Since the start of the pandemic Covid-19UEFA has decided to pause its financial fair play, leaving clubs more free during this difficult period.
But while we are slowly seeing the end of the tunnel, the governing body of world football has just unveiled the new outlines of its regulations around three major axes: solvency, stability and cost control.
“Better creditor protection”
First of all, solvency is addressed: “The new rule prohibiting non-payment (towards football clubs, employees, social and tax authorities and UEFA) provide better creditor protection. Checks will be carried out quarterly and there will be less tolerance for bad payers,” the statement read.
Thereafter, we learn more about the notion of stability advocated: “The new football results requirements are an evolution of the existing break-even requirements and will bring greater capacity to club finances.
In order to facilitate the implementation for clubs, the calculation of football income is similar to the calculation of the break-even point.
While the acceptable spread has increased from €30m over three years to €60m over three years, requirements to ensure fair value of transactions, improve club balance sheets and reduce debt have been considerably reinforced.
A three-year implementation
Finally, UEFA provides an update on “its biggest innovation” regarding the “roster cost rule to better control costs related to player salaries and transfer fees: the regulations limit spending on salaries, transfers and agent fees to 70% of club revenue.
Assessments will be made in a timely manner and infractions will result in financial penalties and predefined sporting measures.“
All of this will come into effect from June 2022 with a gradual implementation over three years in order to give clubs the necessary time to adapt, enough to move a few lines for the summer transfer window.
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