Three pillars of justice
After lengthy discussions, UEFA has reformed its controversial rules on Financial Fair Play (FFP) and is hoping for more economic stability and common sense among the clubs. “These regulations will help us protect football and prepare it for possible future shocks. At the same time, it will encourage sound investments and aim for a more sustainable future for football,” said President Aleksander Ceferin after Thursday’s UEFA Executive Committee meeting in Nyon.
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The core of the new rules, which will come into force on June 22nd, are based on the three pillars of cost control, stability and solvency. In the future, clubs may only spend 70 percent of their income on squad costs, including transfers and costs for player agents. However, the so-called “management cost control” will come into effect in three stages – from 90 to 80 to the announced 70 percent in a three-year cycle until 2025.
In future, the clubs’ solvency will be checked four times a year, once by national license inspectors and three times by UEFA financial experts. In return, the amount of accepted deviations was increased from 30 to 60 million over three years. Clubs with a good financial basis even get a bonus of 10 million euros annually. Possible penalties go beyond financial sanctions and can lead to point deductions, transfer bans and exclusion from competitions.
A reform of Financial Fair Play had also been called for by leading German officials such as Karl-Heinz Rummenigge and Oliver Kahn from FC Bayern Munich. In the competition with clubs like Manchester City or Paris Saint-Germain, which are funded by investors, one cannot otherwise keep up, so the argument goes. The Court of Arbitration for Sport CAS had reversed judgments against top clubs based on the FFP in recent years. “We cannot rule out that there will be more lawsuits before the CAS,” UEFA’s director of financial stability, Andrea Traverso, said on Thursday.
the #UEFAExCo has approved new Club Licensing and Financial Sustainability Regulations.
Featuring three key pillars of solvency, stability and cost control, new rules will come into force in June 2022.
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— UEFA (@UEFA) April 7, 2022
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