What are Financial Fair Play (FFP) rules? Here is the answer.
Capitalism and football have become inseparable nowadays. When football in this era is more than a sport, it is a business cycle that generates enormous amounts of money. Especially with the capital groups that gradually slapped the parade to support the famous team so widely. That it was able to use the money to buy success into the club in the past several years.
However, in order to control spending and to bridge the gap between low-income teams and high-pocketed teams. The Financial Fair Play rule was instituted to prevent overspending and maintain balance. as much space between each club as possible.
When did the Financial Fair Play (FFP) rules begin?
The concept was developed by the Union of European Football Associations (UEFA) in 2009. Before being implement in the 2011/12 season.
The basic principle is to ensure that each club does not spend more than they earn. This prevents the financial problems. That many clubs in the past were hit until they fell apart. According to a 2009 report by UEFA, more than half of European clubs are in financial trouble and around 20% are at risk of bankruptcy. This concept will stop each team from spending too much and need to manage the budget within the specified framework.
UEFA’s FFP
UEFA’s Financial Fair Play rules have changed and improved over the years. The new regulation was last amende in mid-2022. Which according to UEFA’s new rules allow clubs to lose no more than 60 million euros over a three-year period. Up from the previously stated 30 million euros in total. To specify that various internal expenses. Including wages, transfer fees, agent fees, must not exceed 70% of the club’s total income by 2025/26, and the club must also pay the outstanding debt on time within the specified time frame. as well
Premier League FFP
The English Premier League have their own different financial rules They have many numerical requirements. This includes regulations on time frames for each club to pay trading fees, wages and taxes on time. In addition, all clubs in England are also force to disclose account numbers and other financial evidence as well.
However, it seems Chelsea new owner, Todd Boleigh, is defying the rule of thumb by spending club-record money since his first takeover.