UEFA financial fair play regulations : a solution to the deteriorating financial situation of professional football clubs in Europe

Abstract

The Financial Fair Play regulations, drawn up by UEFA and applicable to all its member associations, oblige football clubs participating in European competitions to break-even over the course of a number of years. Wage-to-turnover ratios are being set at a maximum of 70% and rich owners are only allowed to cover losses using their own money up to a certain amount. While in theory these rules are potentially seen as the answer to the presently great financial problems in the game, it remains to be seen how they will work in practice. Some observers argue that they impede the notion of commercial fair competition within the EU, while some argue that the football clubs' legal teams will be able to find loopholes and tip-toe their way out of obeying these regulations. The merits of the Financial Fair Play rules, as well as the ongoing criticisms and loopholes, are dealt with in this study. A conclusion as to whether these financial rules serve as a solution to the deteriorating financial situation of European football clubs is debatable due to the fact that they are yet to be fully implemented and no one as yet knows the full implications that will be borne.