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UEFA changes the Financial Fair Play rule
22/03/23
15:36
sokapro-UEFA changes the Financial Fair Play rule

Clubs that will fail to follow the rule will have their points deducted or face relegation from the European Leagues including Champions League.

Europe's governing football body, UEFA is set to replace the financial fair play rule. An overhaul of financial restrictions in European soccer will be discussed by leading clubs at a meeting Thursday with limits on spending rather than salary caps. The current rule places limits on losses and has been in place for more than a decade. In the new rule, teams in competitions including the UEFA Champions League will only be allowed to spend up to 70% of their income on soccer-related activities. The plans are however still being formulated.


There are issues such as social contributions and domestic tax regimes that that could benefit clubs over rivals and all these will be discussed at a UEFA executive committee meeting in April. Most clubs have been pushing to be allowed to spend up to 85% of their earnings but sources indicate that at the beginning of the new rule, that cap will be up to 90% but will eventually go down to 70%. Teams over-spending could be relegated within UEFA’s competitions, from the Champions League to the Europa League and the Europa Conference League. Failure to follow the limit could also result to a deduction of points. 

The rule is not all tough however, as there could be an additional $10 million allowed to be spend above the cap as a sustainability bonus if a team is in strong financial health. This new rule is designed to ensure a form of competitive balance but somehow stills provide a built-in advantage to the richest clubs in Europe. Paris Saint Germain, owned by Qatar and Manchester City, funded by Abu-Dhabi have had more than a decade of lavish investment in players but they are both yet to win the Champions League.