Uefa FFP: 70% squad cost rule introduced

Uefa has introduced new financial regulations to limit clubs’ spending on wages, transfers and agents’ fees to 70% of their revenue.

Permitted losses over a three-year period also increases from 30m euros (£24.98m) to 60m euros (£49.96m).

According to gatherings by TopNaija.ng, the new rules will be effected in June giving clubs three years to implement.

Uefa said, “breaches will result in pre-defined financial penalties and sporting measures”.

Also as part of the new regulations, new reinforced punishments, including points deductions, demotion to lower-ranking competitions and potential exclusion from European football completely.

Clubs will expectedly spend 90% of their income in 2023-24, which will be reduced to 80% in 2024-25 and 70% a year later.

The new “financial sustainability regulations” have been put together by Uefa and the influential European Clubs Association (ECA) and “are the first major reform” of the financial fair play (FFP) rules introduced in 2010.

In a statement by Aleksander Ceferin, president of European football’s governing body, “Uefa’s first financial regulations, introduced in 2010, served its primary purpose.”

“They helped pull European football finances back from the brink and revolutionised how European football clubs are run.

“However, the evolution of the football industry, alongside the inevitable financial effects of the pandemic, has shown the need for wholesale reform and new financial sustainability regulations.

“These [new] regulations will help us protect the game and prepare it for any potential future shock, while encouraging rational investments and building a more sustainable future for the game.”

Uefa added that, “While the acceptable deviation has increased from 30m euros over three years to 60m over three years, requirements to ensure the fair value of transactions, to improve the clubs’ balance sheet, and to reduce debts have been significantly strengthened.

“The biggest innovation in the new regulations will be the introduction of a squad cost rule to bring better cost control in relation to player wages and transfer costs.

“The regulation limits spending on wages, transfers, and agent fees to 70% of club revenue.”