Bristol City CEO Richard Gould admits there remains uncertainty over the club's position in regards to Financial Fair Play and refused to rule out whether they'll be a potential points deduction in the future.
Gould declared that it won't be for another six to nine months before they get more clarity over the process as discussions continue among Uefa and the Premier League over the redistribution of cash into the Football League.
City posted losses of £38.4m at the end of the 2021 financial year with their business model impacted by Covid leading to the collapse of the transfer market. The club have been working hard to cut losses including reducing the wage bill to become more sustainable.
According to EFL rules, clubs aren't allowed to exceed losses of £39million over a rolling period of three years. They fell within the threshold for 2021 to avoid any points deduction for last season but that could change in February when submissions are made and the £11m profit made from the 2018/19 season falls out of the equation.
Speaking to 3 Peaps in a Podcast, Gould said in relation to a potential points deduction: "There is a degree of uncertainty on that. We don't know quite what the final position will be but Uefa have issued new rules and regulations now and they think it will be converted to something that will work through to the Championship and the rest of the Football League.
"Alongside that, there are discussions going on with the Premier League over the redistribution over finances in regards to parachute payments and what goes down into the Football League.
"There's a lot in the mix at the moment and I expect that to solidify over the next six to nine months and perhaps provide the benchwork going forward. The Uefa priority seems to focus on the percentage of the turnover model.
"I'm expecting a reset over the next six to nine months but we haven't heard anything officially."
Uefa's new spending rules would limit the club spending on wages, transfers and agents' fees to 70 per cent of their revenue from 2025 with the plans being phased in from 2023. It means clubs will be able to spend 90% of their income, reducing to 80% in 2024 and 70% in 2023.
Plans also being put forward by Uefa also claim clubs can permit losses over a three-year period from £24.98m to £49.96m provided they are covered by cash injections. In June, owner Steve Lansdown provided a fresh £15.3m injection to the club by writing off debt and converting them to shares.
In regards to parachute payments, they could be drastically cut after Premier League clubs came to an agreement for a new way to filter cash into the Championship.
As it stands, relegated teams receive three payments that are divided as an equal share of broadcast revenue paid to Premier League clubs to help mitigate the huge drop in revenue that fails to cover the wage bills accumulated.
According to the Times, funding to clubs in the Championship will be allocated depending on where each side finishes in the league table as a sliding system. It is similar to how money is currently distributed in the Premier League.
The plan, called "A New Deal For Football", also cuts back on parachute payments which will "greatly reduce" the £44million handed to clubs who are relegated from the Premier League in their first season. The initiative is to help prevent clubs spending beyond their means and creates a fairer playing field across the league.
Gould added: "Clearly were going through a financial restructuring to get our cost base down and that's going to take probably another nine to 10 months to play out fully and whilst we'd always like to add another player or another two players at any particular time, we do have to be mindful.
"We do have fantastic ownership not just as a football club but as a city, and the facilities that you see at Ashton Gate, and you see the quality of comfort and output that Ashton Gate provided yesterday with 25,000 people.
"There is a degree of restructuring and we have to be mindful of making sure that we can help to add some additional balance to the books because of the ownership and our ambitions were always going to acquire a degree of investment. I think that's well understood and we need to try and deliver on that."
READ NEXT
Nigel Pearson fires defensive warning as Bristol City undone by Sunderland's 'lively' front two
Szmodics out to prove Bristol City fans wrong and criticises the club's recruitment process
Bristol City manager calls for referees to be mic'd up while backing the introduction of VAR
SIGN UP: For our daily Robins newsletter, bringing you the latest from Ashton Gate
