An independent Disciplinary Commission, appointed under EFL Regulations, has today ruled that Birmingham City will be deducted nine points as a result of a breach of the League’s Profitability and Sustainability Rules (Rules).
It follows a review of the financial submission from Birmingham City for the three year period 2015/16 to 2017/18 where it was determined the Club had recorded losses in excess of the £39.0m upper loss threshold.
On 14 August 2018 the Club was charged with a breach of those Rules. At a hearing on 18 March 2019, the Club pleaded guilty to the charge, and after hearing representations from both parties, the panel has fully considered the matter and ruled a nine point deduction is appropriate, which will take effect in the current season.
An EFL spokesman said: “The Profitability and Sustainability Rules, aligned with those in the Premier League, became effective in 2015/16. Season 2017/18 was the end of the first full reporting period with Birmingham City the only Club found to have breached those requirements, when it incurred adjusted losses of £48.787 million, £9.787 million in excess of the permitted losses.
“The Disciplinary Commission had the opportunity to consider all relevant factors in reaching its determination, including the Club’s mitigation.”
The parties have 14 days in which to appeal the decision, and in the circumstances no further comment will be made.
The Championship league table will be amended with immediate effect but it must be recognised that this remains subject to the outcome of any appeal.
A copy of the decision of the Disciplinary Commission can be read here.