With many clubs reeling from the financial fallout of the pandemic and competitive inequality despite existing fair play rules, UEFA will unveil changes to its strategy to level the economic playing field of European football.
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After months of discussion, UEFA is expected to adopt an overhaul of the Financial Fair Play (FFP) system introduced in 2010 to prevent clubs from accumulating debt in pursuit of trophies.
From requiring clubs to balance their books, the focus will be on curbing spending on salaries, transfer fees and agent commissions.
Rafael Poli, head of the CIES football observatory in Neuchatel, told AFP the change in approach could make clubs more attractive to potential investors by imposing a certain cap on costs.
“You can invest new money, but you shouldn’t spend it on recruitment and salaries,” he said.
“Even the big clubs are victims of this wage inflation when they feed it.”
Over the 12 years, the FFP has persuaded many clubs to clear their accounts, but its limits have become clear.
The super-rich owners, who are not interested in profits led by state-owned Manchester City and Paris Saint-Germain, have found ways to boost their clubs’ income.
On the other hand, as the Covid pandemic cost European football nearly seven billion euros over two seasons, the FFP left poor clubs little room to maneuver.
To avoid a wave of bankruptcies, UEFA eased its deficit rules in 2020, and then announced an overhaul of FFP.
The plan combines strategies used by North American sports.
The largest of them, the National Football League, has only 32 clubs, all in the United States, and negotiates with a single player association.
UEFA, on the other hand, has 55 member countries with over 1,000 clubs and must contend with EU and national labor and competition laws.
This makes the “hard” pay range used by most North American leagues impractical.
– ‘luxury tax’ –
Nevertheless, while UEFA plans to double the allowed deficit in three years (60 million euros), it will force clubs to limit wage bills. That limit will drop as existing contracts expire: 90 percent of the club’s income in 2023–2024, falling to 70 percent from 2025–2026.
UEFA also plans to borrow from the “luxury tax” used by Major League Baseball.
Clubs that spend more will be fined one percent of the overrun. The money will be redistributed to more virtuous clubs.
Since the wealthiest clubs cannot be barred from financial penalties, UEFA’s plan includes signing bans, loan sanctions, demotion from one European competition to another and penalty points in “mini-league” competitions that will be grouped into European competitions from 2024. will change the steps. ,
Polly says the plan gives even wealthier clubs clarity.
“Investors speculate: they could put a figure on their budget if they choose to spend more than the salary limit,” he said, adding that they were able to brand the new rules “in the face of extreme demands” from players. Will be agents.
Yet the new rules will not deter clubs with unlimited backing if they are to continue their financial strength.
The debt ceiling means that members of the old elite such as Barcelona and Juventus, who have spent more trying to keep their frustration with the support of the Super League plan, could continue to struggle to compete.
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