Under the updated regulations, any entity that, alone or in aggregate together with other entities which are linked to the same owner or government, represent more than 30% of the club's total revenues is automatically considered a related party.Ħ) Who grants a licence to clubs to compete in a UEFA competition?Įvery club that has qualified for the UEFA Champions League or UEFA Europa League needs a licence, which is granted to a club by the national associations (or sometimes leagues). If a club's owner injects money into the club through a sponsorship deal with a company to which he is related, then UEFA's competent bodies will investigate and, if necessary, adapt the calculations of the break-even result for the sponsorship revenues to the level which is appropriate ('fair value') according to market prices. This has led to the conclusion of settlement agreements between a club and the CFCB, combining certain financial contributions with numerous restrictive conditions, which provide a roadmap for clubs to reach break-even in the foreseeable future (see further detail in points 11–16).ĥ) Are owners allowed to inject money into their club as they like or through sponsorship? In addition the CFCB have decided in numerous cases that the objectives of FFP can be best achieved by taking a rehabilitative approach rather than a punitive approach.

There is a catalogue of measures: a) warning b) reprimand c) fine d) deduction of points e) withholding of revenues from a UEFA competition f) prohibition on registering new players in UEFA competitions g) restriction on the number of players that a club may register for participation in UEFA competitions, including a financial limit on the overall aggregate cost of the employee benefits expenses of players registered on the A-list for the purposes of UEFA club competitions h) disqualification from competitions in progress and/or exclusion from future competitions i) withdrawal of a title or award the trend of the break-even result) different disciplinary measures may be imposed against a club. Non-compliance with the regulations does not mean that a club will be excluded automatically, but there will be no exceptions. If a club is not in line with the regulations, it will be UEFA's Club Financial Control Body that decides on measures and sanctions. In order to promote investment in stadiums, training facilities, youth development and women’s football (from 2015), all such costs are excluded from the break-even calculation.Ĥ) Are clubs automatically excluded if they are not in line with FFP? This prevents the build-up of unsustainable debt. However it can exceed this level to a certain limit, if it is entirely covered by a direct contribution/payment from the club owner(s) or a related party. To be exact, clubs can spend up to €5million more than they earn per assessment period (three years). For the first time the work of the CFCB is potentially expanded to include clubs not yet qualified for UEFA competitions but who anticipate and want to participate at some stage in the future.ģ) Are clubs no longer allowed to have losses? Situations addressed include clubs requiring business restructuring, clubs facing sudden economic shocks and clubs operating with severe market structural deficiencies in their operating region. The conditions relating to non-compliance with break-even requirements were effective for the 2014/15 campaign.įrom June 2015, UEFA updated its regulations (as it does from time to time for all regulations) to address some specific circumstances with the aim to encourage more sustainable investment while maintaining control on overspending. In assessing this, the independent Club Financial Control Body (CFCB) analyses each season three years' worth of club financial figures, for all clubs in UEFA competitions, The first sanctions and conditions for clubs not fulfilling the break-even requirement were set following this first assessment in May 2014. Since 2013, clubs have also been assessed against break-even requirements, which require clubs to balance their spending with their revenues and restricts clubs from accumulating debt. In other words, they have to prove they have paid their bills. Since then clubs that have qualified for UEFA competitions have to prove they do not have overdue payables towards other clubs, their players and social/tax authorities throughout the season. 1) How do you explain financial fair play in one sentence?įinancial fair play is about improving the overall financial health of European club football.įinancial fair play was approved in 2010 and the first assessments kicked off in 2011.

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