This morning at UEFA’s Executive Committee meeting in Nyon, the UEFA announces new financial regulations that will limit clubs’ spending on wages, transfers, and agents’ fees to 70% of their revenue.
The move will eliminate Financial Fair Play system, the existing system that was implemented in 2010.
Over the past 12 years, the permitted losses steadily increased, with losses doubling from 30m euros, equalling £24.98m to 60m euros equalling £49.96m.
The new rules, however, were created to combat excessive spending by wealthy club owners seen as an unfair playing field, establishing 3 “three pillars” to UEFA’s new rules: “Solvency, stability, and cost control.”
The rules will begin in June, with 3 years to undo the cap; with the expectation being that it will decrease to 80% in revenue by 2023, and 70% by 2024. Failure to comply with the rule will result in “pre-defined financial penalties and sporting measures”.