West Bromwich Albion: Championship club decide against appealing against EFL penalty

Central to Albion’s objection at the time was around so-called ‘in-kind’ payments, which are not included in PSR calculations, to their charity The Albion Foundation.

The Baggies said at the time the Club Financial Reporting Unit (CFRU) accepted the payments of £2.1m were not part of the final PSR calculation, but the EFL said that had been “disallowed”.

“The CFRU originally made an adjustment to the club’s final PSR calculation by disallowing an amount of just over £2.1m which had been claimed as Community Development Expenditure,” the EFL said in a statement., external

It added that such expenditure – one type of permitted ‘add-backs’ – is allowed in PSR calculations “to ensure clubs are not penalised for spending on areas considered to be good causes”, but added “only where the expense is actually incurred and recorded by the club in its own accounts”.

The EFL continued: “The CFRP [club financial review panel] was explicit in its view that its role is to decide whether the adjustment is allowed under the financial rules and not to judge how valuable the benefits are to the Foundation or the local community.”

In response,, external Albion said they “remain strongly of the view” the CFRU was “not entitled to change its approach” retrospectively and considered it “grossly unfair”.

However, the club said an appeal against the decision “would serve no practical purpose”, and that it was in their best interests to “close this chapter and focus on the future”.

“The club is grateful to its players, staff and loyal supporters for the way in which they responded under significant pressure to ensure matters were settled on the pitch.

“The unity shown throughout this period reflects everything that is good about Albion and sets the standard for how we must now move forward together.”