Swindon Town's transfer fee restriction: What happened and why
Ink Sports Focus with STFC writer Sam Morshead
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The restricted transfer window for Swindon Town
By STFC writer Sam Morshead
On Tuesday, the reasons for Swindon Town’s unusual January transfer window activity became clear.
In a written judgement, the EFL confirmed that the club had been operating under a fee restriction throughout the month, imposed because of late payments which had become 30 days or more overdue.
It was, the club said, down to an administrative oversight. Here, The Ink breaks down what happened, why, and what happens next.
So what have the club done now?
Between June and November last year, Swindon Town were late to pay bills to HMRC and a third-party club. The EFL have in recent years attempted to tighten rules so member clubs do not default on payments, and so there are automatic penalties which apply when they do.
Who is responsible for finding out about late payments?
According to the EFL regulations, member clubs “must report the failure to make payment… within two days of any such missed payment”.
Clubs owed money by a third-party club are also obliged to notify the league when that money is two days overdue.
How late were these payments?
One payment to HMRC (dating from June) was seven days overdue, another (dating from October) was five days past due.
The third – and the “primary offence”, according to the EFL – was ticket monies owed to another club that had reached 27 days late.
And how long can clubs go overdue before they start triggering EFL penalties?
Under clause 52.6 in the EFL regulations, introduced in 2015, clubs are automatically sent a written warning when they go 10 days overdue – either on one single payment or where several overdue payments reach a cumulative 10 days.
Once that number hits 20 days, clubs in League Two receive a mandatory £2,000 fine or a fine of five per cent of the total due – whichever is higher.
Should any club go over 30 days overdue in a single 12-month period, then the rules state a three-window fee restriction on transfers should be imposed.
Until June 2023, these penalties did not come with the option of an appeal.
How much money are we talking about?