UEFA Outlines New Financial Regulations To Reform FFP

New financial regulations were announced by UEFA this week.They will take over from the original FFP (financial fair play) rules that were introduced in 2010.

New financial regulations were announced by UEFA this week.

They will take over from the original FFP (financial fair play) rules that were introduced in 2010.

What are UEFA's new financial regulations?

The amount that clubs are permitted to lose over a three-year period will double from €30m to €60m. 

Under the new regulations, European clubs will be limited to spending 70% percent of their revenue on wages, transfers and agents' fees.

When will they start?

UEFA's new rules will come into effect in June but clubs will have three years to implement them.

It is expected that clubs will be allowed to spend 90% of their income in 2023/24 and 80% in 2024/25, before the rules come into full force in 2025/26.

What punishments will rule-breakers face?

"Breaches will result in pre-defined financial penalties and sporting measures," UEFA has said.

In addition to fines, likely punishments include points deductions in domestic leagues, demotion to lower-ranking competitions and a total exclusion from UEFA tournaments for severe rule-breakers.

What has been said?

UEFA president Aleksander Ceferin was quoted in a statement as saying: "UEFA's first financial regulations, introduced in 2010, served its primary purpose.

"They helped pull European football finances back from the brink and revolutionized how European football clubs are run.

"However, the evolution of the football industry, alongside the inevitable financial effects of the pandemic, has shown the need for wholesale reform and new financial sustainability regulations.

"These [new] regulations will help us protect the game and prepare it for any potential future shock, while encouraging rational investments and building a more sustainable future for the game."

UEFA president Aleksander Ceferin pictured last month at FIFA's 72nd congress in Doha :: IMAGO/Schuler

UEFA's statement added: "While the acceptable deviation has increased from 30m euros over three years to 60m over three years, requirements to ensure the fair value of transactions, to improve the clubs' balance sheet, and to reduce debts have been significantly strengthened.

"The biggest innovation in the new regulations will be the introduction of a squad cost rule to bring better cost control in relation to player wages and transfer costs.

"The regulation limits spending on wages, transfers, and agent fees to 70% of club revenue."

What were the old FFP rules?

Under the current FFP rules which are being replaced, clubs can only spend €5m more than they earn during a three-year period.

But clubs are allowed to exceed this limit to a maximum of €30m if those losses are covered in full by a payment from the club's owners.

Significant allowances were made in recent years to offer clubs leniency because of financial losses incurred as a result of the COVID pandemic.