By Andrew Warshaw
June 30 – UEFA’s tweaked financial fair play rules come into effect tomorrow with the organisation re-iterating the system has been a success despite the highly-publicised legal challenge from Belgium which threatens to undermine years’ of painstaking work to ensure clubs balance their books.
UEFA is softening some of the restrictions on spending in an attempt to encourage new investors as well as ensuring financial stability – so long as clubs do not run into financial difficulties and have viable business plans.
UEFA general secretary Gianni Infantino told a news conference following a two-day executive committee meeting in Prague that the changes “took into consideration the whole economic environment and the experience gained over the last five years.”
“FFP has been a great success story and the figures show it. The losses of European club football have gone down in only three years from €1.7 billion to €400 million. Now we can strengthen the rules by allowing investment in an easier way.”
Until now, clubs failing FFP have been offered settlement agreements but under the softened rules, clubs undertaking a change of ownership or development of a new business plan can themselves seek a voluntary accord.
On Monday Infantino had told reporters: “We always said we want investors in football but good investors. Sadly we have in many countries all over Europe people who came into football, promised all sorts of things and clubs have then gone bankrupt.”
Critics say FFP prevents clubs who aspire to join the established elite from growing and merely preserves the status quo.
Responding to this, Infantino added at today’s press conference: “The changes address clubs who have undergone a restructuring or a takeover … and want to increase their revenue. They can now ask for an agreement instead of a waiting until a breach (of FFP) has occurred and then, maybe, having to try to find a settlement. It’s a pre-emptive action, if you like.”
Dynamo Moscow have been banned from European football next season for breaking the rules while others, including Paris St Germain, Manchester City, AS Roma and Inter Milan, have been hit with fines and squad reductions.
A further change is clubs may now deduct expenditure in youth and women’s football from the break-even calculation.
“We think we can move European club football on from what was risky management, from the vicious circle that we had some years ago to a virtuous circle still under the same philosophy,” said Infantino. “It is a fair argument to say, ‘If you want me to improve revenue, I first have to invest something…”
In an earlier statement, UEFA president Michel Platini commented: “The overall objectives of financial fair play remain the same. We are just evolving from a period of austerity to one where we can offer more opportunities for sustainable growth and development.”
UEFA also announced that having missed out on the pan-European 2020 finals, Cardiff will stage the 2017 Champions League final.
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