QPR face up to football’s biggest fine
£40m bill for huge overspend
QUEENS PARK RANGERS are facing the biggest fine in football history, in excess of a staggering £ 40million, after failing in a legal challenge to the English Football League’s financial fair play rules.
The club stand accused of cheating their way to Premier League promotion in 2014 by spending far in excess of the permitted amounts and then manipulating their accounts to make it appear they had not broken the rules.
After reaching the top flight under the guidance of manager Harry Redknapp and chairman Tony Fernandes, the west London side posted a loss of £ 9.7m for the 2013-14 season.
But the accounts included a £ 60m income injection from the club’s owners to write off loans that was classed as an ‘exceptional item’.
The EFL, back then simply the Football League, considered that to be a crude attempt to disguise QPR’s total losses and what they viewed as a clear breach of FFP regulations.
Despite being a second-tier club, QPR boasted the eighth highest wage bill in English football that season — in excess of £75m — and risked a heavy fine given the Football League’s FFP rules at that time.
The Football League’s 2012 rules allowed Championship clubs losses of up to £8m in 2013-14, with clubs promoted to the Premier League subject to a fine if they exceeded that figure.
And while there was a sliding scale of fines on losses between £8m and £18m, anything in excess of £ 18m would be punished by a fine imposed on a strict pound-for-pound basis.
The EFL have not disclosed the exact figure but insiders believe that QPR are now facing a fine just over £40m having failed in their three-year legal battle to prove that the Football League rules, since updated, were unlawful.
Yesterday the EFL said in a statement: ‘An arbitral panel has dismissed Queens Park Rangers’ claim that the English Football League’s 2012 financial fair play rules were unlawful under competition law, and also found that the fine levied by the EFL on the club was not disproportionate.
‘The decision of the three-man panel was released to the parties on October 19. QPR has indicated that it intends to appeal the decision.’
Having been relegated from the Premier League the previous season, QPR were promoted via the play- offs in May 2014 after beating Derby County 1-0 in the Wembley final.
But if Bobby Zamora’s late goal was celebrated at the time as a jackpot strike, it now looks rather expensive for a club currently sitting 17th in the Championship.
QPR have indeed indicated that they plan to appeal and it remains to be seen how they might pay the FFP fine.
On the club’s website, QPR chief executive Lee Hoos said: ‘ We are understandably disappointed with the decision. We are currently examining our next steps, but we will be appealing.’
EFL chief executive Shaun Harvey said: ‘This decision vindicates the approach of the EFL board in defending this challenge. The board will continue to enforce our rules on clubs to protect the interests of those that do comply.
‘The board understand the challenges that this decision could create for our valued member club and will work with them, as and when the matter formally concludes.
‘It has taken a long time to get to this outcome and I’d like to publicly thank all those individuals who have supported our approach.’