The UEFA Financial Fair Play Regulations (FFP) were created to prevent professional football clubs from spending more than they make in order to achieve success, explained the new rules in 2022
Thereby avoid financial problems that could jeopardise long-term viability. Some believe that they were established to prevent financial “doping” by outside their parties infusing funds into smaller clubs. The Financial Control Panel of football’s governing body in Europe (Union of European Football Associations – UEFA) agreed to them in principle in September 2009.
New UEFA FFP Rules List 2022 In Football Explained And How Will They Impact Clubs Spending
Penalties For FPP
The rules provide that clubs will face penalty if they spend more than a certain amount over a period of time and within a certain financial limit. The regulations went into effect at the start of the 2011–12 football season. Disqualification from competition is the most severe consequence. The most severe penalty is exclusion from European competitions. Fines, prize money withholding, and player transfer bans were among the other sanctions.
What Changes Have Been Made? The Bigger Picture
UEFA approved new licencing regulations on Thursday to replace its old Financial Fair Play standards, allowing European clubs to generate larger losses than before but capping wage and transfer spending.
As expected, European football’s governing body has opted to alter the FFP guidelines, which were implemented in 2010 to help teams across the continent cut spiralling debts.The advent of state-owned titans like Manchester City and Paris Saint-Germain had exposed FFP’s shortcomings.
The most significant novelty will be the adoption of a squad cost rule to improve cost control in respect to player pay and transfer prices. UEFA president Aleksander Ceferin said this at a press conference in Nyon, Switzerland, following a meeting of the UEFA Executive Committee.
UEFA will now allow clubs to declare losses of 60 million euros ($65.5 million) over three years, rather than the previous limit of 30 million euros, and the limit will even be increased to 90 million euros for a team in “excellent financial condition.”
However, this loosening of the laws is accompanied by new wage spending ceilings.
Because UEFA has 55 member countries with well over 1,000 teams and must comply with European Union and national labour and competition rules, there was never any chance of bringing in a specific salary ceiling like those used in North American sports.
However, teams will be required to limit spending on player and staff wages, transfers, and agent fees to 70% of total earnings by the end of the year under UEFA’s new regulations.
Rules On Wages, Transfer And Agents
As present contracts expire, the maximum will decline to 90% of club income in 2023/24, then to 80% the following season, and finally to 70%.
Breach of the rules will result in predetermined financial penalties and sporting sanctions, Ceferin added.
Transfer bans, loan limitations, relegation from one European competition to another, and point deductions in the Champions League might all be imposed on clubs which disobey the regulations.
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