Blog

Financial fair play (FFP) was established by UEFA in 2009 and implemented at the start of the 2011/12 season. FFP regulate that football clubs do not spend more than they earn by preventing them from falling into financial trouble which may affect the club. FFP was introduced by Micheal Platini when he noticed that 50% of clubs were losing money, and unpaid debts and saw it as an increasing trend.

Football clubs were not permitted to spend more than ₤4.2m of their earnings over three years or ₤25m if the owner was able to cover the loan. In 2022 UEFA approved new rules stating that by 2025 a club’s total expenditure must not exceed 70% of its total revenue. Football clubs are allowed to lose ₤53.6m over 3 years period with an extra ₤8.9m annual loss permitted if the club is deemed to be financially stable. Infrastructures, training facilities and expenditures are not included in the FFP rules.

The EPL has its different laws regarding club finances, accounting and governance in which they must also submit accounts annually and disclose payments made to agents when signing new players.

Punishments for breaking the FFP rules include:

• Points deductions.
• Expulsion from competitions.
• Prohibition to sign new players.
• Withholding of revenues.
•  
• Disqualification from an ongoing competition.
•  
• Suspension of football clubs
• Some matches are to be replayed

Everton FC are the current team to face disciplinary action by the FFP in the 2023/24 season and they were deducted 10 points, with Chelsea and Manchester City also under investigation. In 2022 top teams including AS Roma, PSG, Ac Roma, Inter Milan and Juventus were fined for failing to comply with the FFP requirements.

What’s you take if the EPL champions Man city end up being heavily penalized like being disqualified?