What is Financial Fair Play? Why were PSG, Juventus & other teams warned by UEFA over FFP?
The Financial Fair Play (FFP) was introduced by the football governing body UEFA. The main objective is to prevent clubs from spending more than they earn.
Some of the top European clubs with the likes of Juventus, PSG are among eight clubs who have been fined by UEFA for breaching Financial Fair Play rules, while 19 more have been warned that they will be ‘monitored closely’ due to their finances. The Financial Fair Play regulations were introduced by UEFA in 2009 but brought into force at the outset of the 2011–12 football season. Let’s take a look at what exactly is Financial Fair Play:
All you need to know about Financial Fair Play
The Financial Fair Play’s (FFP) main objective is to prevent clubs from spending more than they earn in revenues. It also aims to prevent clubs from getting into financial trouble. If you are still wondering how the FFP rules works, well UEFA permits football clubs to spend no more than €5 million (£3.9 million) over what they earn in each three-year assessment period. There is, however, a new limit of 30 million euros (previously 45 million euros) if the owners of the club or a related party can make up for these losses.
How does the Financial Fair Play work?
The Club Financial Control Body (CFCB) mentioned the inclusion of only a club’s outgoings in the area of transfers, employee benefits (including wages), amortisation of transfers, financial costs and dividends to adhere to the Financial Fair Play regulations.
The revenue generated from gate receipts, TV revenue, advertising, merchandising, or money spent on infrastructure, training facilities, or youth development were to be excluded from these regulations.
Clubs fined by UEFA over Financial Fair Play
The European clubs fined by UEFA Over FFP rules were Paris Saint-Germain, AC Milan, Inter Milan, Roma, Juventus, Besiktas, Marseille and Monaco. PSG was fined 10m euros (£8.6m) which could rise to 65m euros (£56.3m) if they don’t comply in the future.
The other clubs monitored by UEFA over FFP were Chelsea, Leicester, Manchester City and West Ham, Scottish Premiership side Rangers, Borussia Dortmund, Barcelona, FC Basel, Union Berlin, Fenerbahce, Feyenoord, Olympique Lyonnais, Real Betis, Royal Antwerp, Sevilla, Lazio, Napoli, Trabzonspor and Wolfsburg.
According to Manchester Evening news, UEFA in its statement has said, “The CFCB First Chamber reminded these clubs that as from financial year 2023 these exceptional COVID deductions and consideration of historical financial results will no longer be possible.
These clubs were further asked for additional financial information and will be monitored closely in the upcoming period. The goal of course is that the clubs’ overall financial situation is in compliance with the UEFA Club Licensing and Financial Sustainability Regulations– Edition 2022 in coming years.”
