Financial Fair Play Rules: What Does It Mean For Football?

Financial Fair Play is something that is regularly in the news where football is concerned. Usually, Financial Fair Play, or FFP as it’s more commonly known, makes the headlines for the wrong reasons because clubs fall foul of the rules. But what does FFP mean for football?

Financial Fair Play was brought in after being approved in 2009 because more than 50% of football clubs in Europe were making a loss, and 20% of those were in what was described as “financial peril.” In short, the UEFA Executive Committee wanted clubs to be more responsible financially, work within their means, and, therefore, make football more sustainable.

However, what’s happened since, and especially recently, is clubs have breached the FFP regulations set out and have subsequently been punished. Everton is a prime example; they’ve been punished with a ten-point deduction, they’ve also just received another FFP charge, and this does have a knock-on effect across the board.

Everton, after receiving their points deduction, fell down the Premier League table. If they were in a position to qualify for Europe, their entry into UEFA competition could be declined. It could also mean players don’t want to sign for them based on league position and their reported financial situation. But it’s more than that; there could be issues obtaining sponsors, there’d undoubtedly be swings in football betting markets, and this is all before Manchester City, the current kings of European football, answer to their charges, of which there are over 100 of them.

So, the answer to the question of what does it (FFP) mean for football is simply that clubs must get in line with the regulations, which ultimately requires them to limit losses to the amount set out by UEFA over a rolling three-year period, or they will face the consequences, and that the organisation is taking things more seriously than ever. Punishments range from reprimands, fines, and points deductions to player registration limitations, exclusions, and disqualifications from competitions. And Everton could be a case study after already receiving a points deduction ahead of more charges.

There have been many instances of clubs breaching FFP rules since its inception, but some have appeared to flaunt the regulations or work to find ways around them, with these loopholes often then being closed and punishments subsequently handed down. But now UEFA have upped the ante in their policing of Financial Fair Play, and this means football and the clubs operating within Europe must adhere to what’s been set out, or it could result in severe penalties.

In truth, if clubs did stay on the right side of the line where FFP is concerned, football would become more sustainable, and there would be fewer instances of financial problems occurring within the European game, which is undoubtedly a good thing. But clubs want to be ambitious, their owners do, and this can often lead them astray, which is what has been seen over the last decade or so.