UEFA Agrees New Financial Sustainability Rules For Clubs

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Top European clubs will be limited to spending no more than 70% of their revenue on their squads under new “sustainability regulations” passed by UEFA’s executive committee on Thursday.

The new approach will replace the previous Financial Fair Play system and introduces a “squad cost rule” that will limit spending on wages, transfers and agent fees.

The 70% figure will be reached after a three year transition period, gradually falling from 90%.

UEFA president, Aleksander Ceferin

“UEFA’s first financial regulations, introduced in 2010, served its primary purpose,” UEFA president Aleksander Ceferin said at the Executive Committee meeting in Nyon. “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.”

UEFA added that acceptable losses will double from 30 million euros ($32.74 million) over three years to 60 million euros over the same period. The new regulations will come into force in June 2022.

UEFA were strong opponents of the FIFA plan for a biennial World Cup, and Ceferin aslo said he was pleased that the idea had been taken off the table by global football’s governing body at their congress in Doha last week.

Asked about possible alternative tournaments, Ceferin said:

“It is good that they have listened to the football community (about the biennial World Cup). I don’t think there is much time for new competitions but let’s speak about it and see,” he added.

“For now we didn’t discuss it. For me it is very good that this project which is more or less a nonsense is off the table.”

Chidi Nwoke/Reuters.

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