UEFA is completely overhauling its Financial Fair Play system. For example, teams will soon be allowed to spend no more than seventy percent of their income on football-related matters, the European Football Association reports.
Under the current Financial Fair Play rules, which have been in effect since 2010, clubs may not lose more than five million euros over a three-year period. If clubs receive investments, that limit could be raised to thirty million euros. That amount has now been increased to 60 million.
On the other hand, clubs will soon be allowed to spend a maximum of seventy percent on things such as transfers, salaries and brokerage fees. The new regulations will come into effect from June, but the measures will be phased in over the next three years to give clubs time to adapt. The new system does not seem favorable for Dutch top clubs such as Ajax and PSV. Both Amsterdammers and Eindhoven residents usually spend more on football costs than the limit of seventy percent. At Ajax this has been an average of 78 percent in recent years.
UEFA president Aleksander Ceferin is nevertheless delighted. “The first financial regulations, introduced in 2010, served their primary purpose. They helped push European football finances off the edge and revolutionized the way European football clubs are run. But the evolution of football and the The financial consequences of the corona crises showed the need for large-scale reforms and new sustainable rules.”
According to Ceferin, the new rules will ‘help protect football’. “In addition, rational investment is encouraged and a more sustainable future of the game is being built.” The New York Times, among others, warned that the difference between the rich and poor clubs is only getting bigger. After all, the European superpowers from England and Spain have the biggest sponsorship deals and the best TV contracts, which means they can spend much more.
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