What does this ruling mean?

West Ham United’s avenues to try and overturn the decision to award compensation to Sheffield United are becoming smaller.

Sheffield United will now feel that they are in a position where they can can now thrash out how much it is they are owed by West Ham. Having said that, West Ham have already signalled their intent to appeal the decision so there is no end in sight just yet.

In recent weeks, both sides have been putting together estimates of the “cost” of relegation – which included income and expenditure. They will clearly differ. West Ham may have access to Sheffield United's books to check figures.

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Both parties will meet the arbitration panel in March to judge how close they are to an agreement. Chances are, they will be fairly far apart and so the process could run on into the summer.

It could well be that the case drags on and it is settled out of court. Then they will have to agree how the compensation is paid, if it’s in installments when they start etc. West Ham would be hoping to start making those payments in the summer so at least they will have some TV revenue etc available to help cover the cost of this.

Is it just a matter of money, rather than points or even relegation?

It will just be financial compensation. It's basically about the two sides agreeing what the difference is, in real terms, between staying in the Premier League and being relegated from it.

The figure of £30million that Sheffield United originally put forward as their income did not included costs. So the true cost of relegation could be lower.

On the other hand, they are also trying to claim for a second season outside the top-flight, so their claim for loss in income could be as much as £60m.

How did Sheffield United arrive at their estimate?

The club estimated the loss in income based on being in the Premier League compared with the Championship. Clubs in the Premier League can expect to receive between £25m and £30m more income from the television deal, as well extra commercial revenue and ticket sales. The club also took into account the sales of players that may have stayed had they remained in the top-flight.

Will any of this affect what Gianfranco Zola does, or has to do in the January transfer window?

No. The next stage of this process won't begin until March and even if they do reach some kind of an agreement then who's to say West Ham will have to pay the money the next day.

West Ham will be hoping the timing of this falls into line with their payments for TV revenue and any money they can raise from the sale of players in the summer. So it shouldn't affect the team for now.