Kieran Maguire: West Brom looking to dodge ‘litigation’ as new FFP details emerge
West Brom and their peers in the EFL have voted to implement the new Club Financial Reporting Unit as they are keen to avoid any potential litigation over Financial Fair Play breaches.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the new body and its role in keeping clubs in check when it comes to spending regulations.
EFL clubs voted unanimously in favour of the creation of the CFRU earlier this year and announced the makeup of the panel on Monday (12 December).
The purpose of the panel is to determine whether clubs’ accounting practises fall in line with the EFL’s rules and regulations, including when it comes to FFP.
Maguire claims that the likes of the Baggies would much prefer to deal with the independent review panel than face any potential legal action because of financial transgressions.
“The unit has been approved by all of the clubs in the EFL,” he told Football Insider’s Adam Williams.
“It is effectively going to be a means of speeding up disputes with respect to unusual accounting practices.
“Many clubs have undertaken these practices, normally in an attempt to circumvent financial fair play or profit and sustainability rules.
“But it took four years, for example, to deal with the problems at Queen’s Park Rangers a couple of years ago. It’s usually a slow rate of progress. That can cause problems because there has been uncertainty.
“Clubs will want to accept the expertise of those who have been appointed to the CFRU and use this is a means of avoiding litigation and speeding up the process.”
In other news, Norwich City and West Brom plot moves for Aston Villa sensation Lamare Bogarde.