UEFA will relax the reins on their Financial Fair Play (FFP) regulations as a result of the coronavirus pandemic sweeping the continent. The governing body have been monitoring club finances closely, which lead to the Executive Committee of UEFA deciding to temporarily relax regulations to help cash-strapped clubs survive the crisis.
On Thursday UFEA decided to relax the FFP rules due to clubs across Europe struggling financially, as clubs have furloughed staff and some players have taken considerable wage cuts. These rules apply to the clubs that compete within UEFA club competitions, the Champions League and Europa League.
The rules state and enforce that clubs do not overspend and overextend their finances by limiting clubs to maximum losses of €30 million over three years, however under the condition that the club owner covers €25 million of those losses. In light of this pandemic, clubs have seen major losses in revenue as a result of fans not being able to attend games, so ticket revenue is not available. In addition to this, sponsorship revenue has been lost as well as broadcasting revenue which is usually a huge percentage of club revenues.
UEFA have now decided to relax these current rules by firstly not assessing 2020 as a financial year, but instead rolling it over to 2021 and assessing both years as one single financial period. The second measure that UEFA has implemented is that they will allow losses over €30 million with the condition that clubs can prove that these losses are due to the Covid-19 pandemic.
In a statement UEFA announce that “the adverse impact of the pandemic is neutralized by averaging the combined deficit of 2020 and 2021 and by further allowing specific COVID-19 adjustments,”
Any breaches of the Financial Fair Play Rules can result in a suspension for the club out of any European club competitions. Manchester City are the recent club under investigation, despite the club filing an appeal the verdict of this case is due next month.
Author: Bradleigh Amis