October 6, 2022

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OFFICIAL: UEFA has approved the new Financial Fair Play

OFFICIAL: UEFA has approved the new Financial Fair Play

The UEFA Executive Committee today approved new club licensing regulations and financial stability at its meeting in Nyon. The regulations are the first major overhaul of UEFA’s financial rules since they were introduced in 2010.

President Aleksander Ceferin said: “The first UEFA Financial Regulations, introduced in 2010, fulfilled its primary mission. They helped pull European football’s finances off the brink and revolutionized how European clubs are run. However, the The development of the football industry along with the inevitable financial effects of the pandemic demonstrated the need for a complete reform and creation of new regulations to achieve financial stability.”

“UEFA has worked with stakeholders from across European football to create these new resources to help clubs meet these new challenges. These regulations will help protect and prepare the game for any potential future shock, but at the same time encourage rational investment and build a more stable future. for the game.”

Given their names, it is not surprising that the main goal of the new regulations is to achieve financial stability. This will be achieved through three pillars: solvency, stability and cost control.

In terms of solvency, the new rule for non-payment of arrears with payments (to clubs, employees, tax authorities or UEFA) will provide better protection for creditors. Audits will be conducted quarterly and there will be less tolerance for late payments.

The new football revenue requirement is an upgrade to the existing tie requirements and will provide greater opportunities for clubs. To make it easier for clubs to offer, calculating football revenue is similar to calculating a tie. While the acceptable difference has increased from 30 million euros in 3 years to 60 million euros in 3 years, the requirements to ensure a fair transaction price have been strengthened, the club’s net profit improved and debts reduced significantly.

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The biggest innovation in the new regulations will be the introduction of a team cost rule, which offers better cost control in terms of player wages and transfer costs. The regulations set wages, transfers and agent fees at 70% of the club’s revenue. Evaluations will be conducted periodically and violators will be penalized with pre-determined financial fines and sporting measures.

The new regulations will come into effect in June 2022. There will be a gradual implementation over 3 years to give clubs the necessary time to adapt.”