By Samindra Kunti
December 10 – European football’s governing body UEFA has announced that it will continue to investigate Monaco under the Financial Fair Play Regulations, while Olympique Lyon has been asked to submit additional information.
UEFA introduced the regulations for the first time during the 2011-12 season to prevent clubs from going bankrupt and increase competitiveness in European football. The regulations forbid clubs to spend more than they earn. UEFA phased in its new regulations and clubs are currently allowed to make losses of up to €45 million. That sum will be reduced to €31 million between 2015 and 2018.
The UEFA Club Financial Control Body (CFCB) investigatory chamber finished its first round of club hearings for all clubs with a financial closing date in June 2014 and concluded that it will further scrutinise Monaco’s club finances. Olympique Lyon, another leading French club, has been requested to submit additional information until February 2015 so that the CFCB can accurately analyse and assess Lyon’s break-even position.
Last season French champions Paris-Saint Germain were fined €60 million by UEFA for failing to comply with the Financial Fair Play Regulations. UEFA also imposed a restriction on transfer spending and a reduction in the club’s squad size for the Champions League.
The club from the principality could now face similar sanctions if the CFCB decides to prosecute the club. Monaco’s Russian owner Dmitry Rybolovlev spent €150 million in the summer of 2013, but the club has since struggled to generate revenues to meet UEFA’s regulations.
The CFCB is also closely monitoring AS Roma, Inter Milan, Liverpool, Sporting Portugal, Krasnodar and Besiktas.
For UEFA, the implementation of Financial Fair Play has been a success so far. According to UEFA’s website, Europe’s first-division clubs reported aggregate losses of €800 million in 2013’s financial year, a marked improvement from the record-reported deficit of €1.7 billion in 2011.
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