21 March 2011

UEFA's Executive Committee unanimously approved a financial fair play concept for the game's well-being in September 2009. The concept has also been supported by the entire football family, with its principal objectives being:

• to introduce more discipline and rationality in club football finances;
• to decrease pressure on salaries and transfer fees and limit inflationary effect;
• to encourage clubs to compete with(in) their revenues;
• to encourage long-term investments in the youth sector and infrastructure;
• to protect the long-term viability of European club football;
• to ensure clubs settle their liabilities on a timely basis.

These approved objectives reflect the view that UEFA has a duty to consider the systemic environment of European club football in which individual clubs compete, and in particular the wider inflationary impact of clubs' spending on salaries and transfer fees.

In recent seasons many clubs have reported repeated, and worsening, financial losses. The wider economic situation has created difficult market conditions for clubs in Europe, and this can negatively impact revenue generation and creates additional challenges for clubs in respect of availability of financing and assessment of going concern. Many clubs have experienced liquidity shortfalls, for instance leading to delayed payments to other clubs, employees and social/tax authorities.

Therefore, as requested by the football family, and in consultation with the football family, UEFA is introducing sensible and achievable measures to realise these goals. They include an obligation for clubs, over a period of time, to balance their books or break even. Under the concept, clubs cannot repeatedly spend more than their generated revenues, and clubs will be obliged to meet all their transfer and employee payment commitments at all times. Higher-risk clubs that fail certain indicators will also be required to provide budgets detailing their strategic plans.

The financial fair play measures will involve a multi-year assessment enabling a longer-term view to be formed and within the wider context of European club football. They will reach beyond the current UEFA club licensing system criteria that are primarily designed to enable an assessment of a club's financial situation in the short term.

A Club Financial Control Panel has been set up to monitor and ensure that clubs adhere to the financial fair play requirements - and in May 2010, the UEFA Executive Committee approved the UEFA Club Licensing and Fair Play Regulations - which have the support of all stakeholders in European football. Financial fair play measures will be implemented over a three-year period, with the break-even assessment covering the financial years ending 2012 and 2013 assessed during 2013/14, and starting with the assessment by the Club Financial Control Panel of all transfer and employee payables in the summer of 2011.{jcomments on}