They're the three little words that mean so much!

Financial Fair Play has become a hot topic in the Championship, especially since QPR announced losses of £65m, Blackburn of £37m and Leicester of £34m for last season.

FFP rules are applicable to accounts for the current campaign, and mean maximum losses of £3m, or £8m if the owner can cover the £5m shortfall,  without punishment (fines or a transfer embargo).

For 2014-15, it’s a ceiling of £3m or £6m with owner investment and for 2015-16, £2m or £5m with owner investment.

They were introduced to address the huge losses sustained by many clubs in a division most are desperate to escape.

Winning one of three precious promotion places, in a fierce yet famously unpredictable competition of 24 clubs playing 46 games, is usually achieved by paying lucrative wages.

The ‘parachute payments’ made by the Premier League to cushion the financial blow of relegation for their members, now up to £59m over four years, hugely more than the other Championship clubs receive from their TV deal, further inflate wages.

For the clubs paying top dollar in their bid to make the top flight, it’s a high-risk strategy.

But with the Premier League offering world club football’s greatest riches – now up to a minimum £120m, including parachute payments, for a single season – it’s a risk some think is worth taking.

While there’s talk of a legal challenge to FFP from a number of Championship clubs, Town are firmly in favour of the rules as they seek to develop while becoming more self-sustaining.

Last season’s loss was £4m, and chief executive Nigel Clibbens said: “We were strong supporters of salary cost management protocols in League I, which basically meant only being able to spend a percentage of turnover, and now we are in the Championship, we are strong supporters of FFP.

“I think it’s early days as to whether the rules are working or not, but there’s no doubt they are changing football in this division.

“People are talking about finances a lot more, and the rules are impacting on the decisions clubs are making.

“Certainly some clubs are embracing FFP more than others, and there are going to be issues to come in terms of compliance and penalties.

“But every club knew what those were when the system was implemented, and we had a period of shadowing the system, so there are no surprises lurking.”

Clibbens says it’s a matter for individual clubs as to whether they flout FFP.

“A lot of clubs are complying, but some are finding it more difficult,” he explained.

“For instance, there is no doubt that some clubs relegated from the Premier League, despite having huge parachute payments, are struggling to cope with the necessary reduction in their wage bills.

“There are some clubs taking the view that they will try to get promoted and worry about the consequences later, which is their choice.

“For those who can afford and want to fund losses, they feel their ability to do what they want is being constrained.

“But the problems come when people stop funding the losses. That can happen very quickly for all kinds of reasons.

“We think FFP is right for the game and right for us, that the stability of our club is better served by not incurring large losses.

“In addition, in the Championship, the more you spend does not guarantee you will rise to the top of league. There is a lot more to it than spending money.

“But there are a number who are doing that, and losing a lot as a result, but only three can win promotion, so some are going to be very disappointed.

“Get out the other side and you can recoup a lot or all of what you have spent.

“If not, you are left with very big debts and a problem.”

Clibbens continued: “History shows that in the Football League, there hasn’t been the ability to afford big losses.

“Commitments are made, contracts are entered into, but the ability to fund them long term is not there. FFP is attempting to bring some balances and sanity.

“It is not good for the credibility of any league to have its competition seen as one where clubs are at risk of going bust.

“It’s not good for fans, clubs or communities.

“Lots of supporters might think it’s great to keep buying players while you are doing it, but when it all unravels, it leaves some very unhappy people.”

Click here for more Huddersfield Town news

Want to read, watch and hear more? You can download the FREE Examiner Apple App  here , the FREE Examiner Android App  here  or you can view the paper as an e-edition on your Apple, Android or Kindle device by clicking  here

Want the latest Huddersfield Town news? Follow our Town news Twitter here