Government issue update on potential FFP punishment which sparked controversial Leeds United opposition

A government white paper published in February called for ‘genuine consequences’ for sides who contravene FFP restrictions, however plans to impose ‘sporting sanctions’ are now set to be vetoed.

Clubs will still be subject to hefty fines for FFP breaches, but will not suffer points deductions and penalties which obstructs their sporting activity.

Culture Secretary Lucy Frazer MP is quoted by Sky News saying the government do not wish to ‘place unnecessary burdens on the game’.

New documents obtained by the broadcaster state: “The regulator would not insist that the leagues take any action but could simply share information where it believes it could be useful for the leagues in monitoring and enforcing their own publicly available rules."

Sanctions which would directly impact ‘sporting outcomes’ are also off the table, according to the government minister.

The independent regulator, which was initially opposed by Leeds United chief executive Angus Kinnear who was criticised for his comparison with Chairman Mao’s ‘Great Leap Forward’, is designed to function as ‘a standalone body to...adequately protect clubs' and fans' interests.’

Legislation is expected to come into force during 2024, possibly for the beginning of the 2024/25 season in the United Kingdom.

Sanctions imposed on Leeds United during the 2000s saw the club deducted points on separate occasions, due to financial difficulties and entering administration under Peter Ridsdale’s chairmanship in 2004. Once more in 2007, the club were handed a 10-point deduction for entering voluntary administration due to mounting debts with ex-Chelsea owner Ken Bates part-owner of the club.

Points deductions will not be off the table, however, as the independent regulator will delegate decisions on sanctions to the respective leagues’ governing bodies. Clubs entering administration, for example, could still be hit with a sporting penalty, as has previously been the case for Leeds and several other Football League clubs.

"The government believes that these sanctions are best left to the existing football authorities to enforce their own respective rules in relation to sporting competition and integrity."

Everton and Manchester City are both under investigation by the Premier League for alleged FFP breaches. Points deductions in either case are unlikely to be imposed.