QPR vow to fight any financial penalties after relegation

London: Queens Park Rangers on Monday reacted to their relegation from the Premier League by insisting they will fight any attempt by the Football League to impose a fine for Financial Fair Play (FFP) breaches.

The west London side could face a fine of up to £58 million ($90 million) following their demotion to the second-tier Championship, which was confirmed by a 6-0 thrashing at Manchester City on Sunday, but they are challenging the legality of the FFP rules.

Legal proceedings between QPR and the Football League are still going on and an independent arbitration panel will decide on whether QPR are liable.

A joint statement from QPR and the Football League said: "Legal proceedings are ongoing as between Queen`s Park Rangers and the Football League.

"QPR challenges the legality of the Football League`s Championship financial fair play rules and any charge against QPR (if any) for breach of FFP Rules shall not be commenced pending the outcome of that challenge.

"The proceedings are confidential in nature and neither party is entitled to comment upon the proceedings until the independent arbitral panel has delivered its decision."

The issue revolves around the 2013-14 season, when QPR were in the Championship before being eventually promoted to the Premier League via the play-offs.

They submitted accounts for that campaign which show a £60 million income injection classed as an "exceptional item" in the accounts which was to write off loans.

Without that money being put in by the owners, the club would have reported a loss of £69.7 million making them liable for huge FFP fines.

The Football League position is understood to be that such equity injections by club owners are not permitted and therefore the club should be dealt with as though it had made a £69.7 million loss.