August 2023 Roundup
A roundup of notable football law decisions from August 2023:
Reading FC
Reading FC and its owner Mr Yongge Dai have been sanctioned following the club’s failure to pay players’ wages on time on three occasions (October 2022, November 2022, and April 2023), in breach of EFL Regulations, reg. 21.2 and 64.7:
‘21.2 […] all Officials and Players shall by virtue of their fulfilment of those rules be deemed to have given to The League:
21.2.1 an undertaking to The League not to bring The League or any Club, into disrepute;
21.2.2 an undertaking not to do anything or omit to do anything which will cause a Club to be in breach of the Laws of the Game, the Football Association Rules, these Regulations or the Articles of Association…’
‘64.7 The terms of a Standard Contract between a Club and a Player shall be strictly adhered to’.
Reading FC and Mr Dai admitted the breaches, and the Disciplinary Commission’s decision on sanction dated 15 August 2023 is available here.
Reading FC was sanctioned with a one-point deduction effective immediately and a suspended three-point deduction for the 2023/24 season to expire on 30 June 2024 on condition that Mr Dai pays 125% of the club’s forecasted monthly wage bill into a deposit account within 28 days of the Disciplinary Commission’s decision, and that there is no further failure to pay players’ wages between 15 August 2023 and 30 June 2024.
Mr Dai was sanctioned with a £10,000 fine (in addition to being required to pay the deposit explained above).
The following points of interest are noted from the Disciplinary Commission’s decision:
The club’s three instances of failing to pay players’ wages on time were treated as one offence rather than three separate offences, which was significant insofar as sanction guidelines were concerned (see paragraph 51).
The length of delay between players’ wages being due and eventually paid was a relevant factor when determining the seriousness of the club’s breach (see paragraphs 55-57).
The club’s failure to engage with the EFL in reaching an Agreed Decision pursuant to EFL Regulations, reg. 86 was an aggravating factor (see paragraphs 66-69).
Morecambe FC
Morecambe FC reached an Agreed Decision with the EFL in respect of the club’s failure to pay players’ wages on time in March 2023.
The Agreed Decision dated 17 August 2023 is available here.
Morecambe FC was sanctioned with a suspended three-point deduction for the 2023/24 season on condition that Mr Jason Whittingham, the club’s owner, pays 125% of the club’s forecasted monthly wage bill into a deposit account by 21 August 2023, and that there is no further failure to pay players’ wages between 17 August 2023 and 30 June 2024.
Cambridge United FC
Cambridge United FC and an employee of the club reached an Agreed Decision with the EFL in respect of the club’s naming of an ineligible player, George Hoddle, in the club’s squad in an EFL League One match against Barnsley FC on 11 February 2023 (in breach of EFL Regulations, reg. 44.6), and an employee of the club filing a backdated registration document with the EFL in an attempt to disguise that breach (in breach of EFL Regulations, reg. 3.4):
‘3.4 In all matters and transactions relating to The League each Club shall behave towards each other Club and The League with the utmost good faith’.
‘44.6 It shall be the responsibility of all Clubs playing in any competition organised by The League to ensure that all Players are so registered. Failure to do so constitutes misconduct’.
The Agreed Decision dated 30 August 2023 is available here.
In respect of the breach relating to EFL Regulations, reg. 44.6, Cambridge United FC was sanctioned with a fine of £2,000, £1,000 of which was suspended on condition that the club does not commit any further breach of EFL Regulations, reg. 44.6 before 30 June 2024. In respect of the breach relating to EFL Regulations, reg. 3.4, the club was also sanctioned with a £10,000 fine.
The club’s unnamed employee responsible for the backdated registration document in breach of EFL Regulations, reg. 21.2.2 was given a written warning.
The club released the following statement about the incident and the Agreed Decision. Fortunately for the club the player was an unused substitute and did not play in the match against Barnsley FC; the fielding of an ineligible play could have resulted in the club being sanctioned with a points deduction (EFL Regulations, reg. 45.2).
Mason Greenwood
Manchester United FC and Mason Greenwood decided ‘that it would be most appropriate for […] [Mason] to […] [continue his career] away from Old Trafford, and […] [Manchester United FC] will now work with Mason to achieve that outcome’.
This helpful article from the sports team at Walker Morris LLP provides an explanation of the background to the club’s investigation into Mason Greenwood’s conduct, the significance of ‘gross misconduct’ as defined in the standard Premier League Contract (see pg. 348-349 of the Premier League Handbook 2023/24), and highlights that the outcome ‘is not a termination of Greenwood’s contract, but a decision that the Club will actively seek a loan deal or transfer to another club’.
1 September 2023