
<p>UEFA looks set to make changes to their Financial Fair Play rules. The governing body of the sport in Europe has allowed teams to <a href="https:\/\/worldsoccertalk.com/news/latest-chelsea-transfers-not-at-fault-for-aimless-spending-20230114-WST-415145.html">spread out transfer fees</a> on players over the duration of their full contract with their new club. However, new tweaks to the rule will reportedly limit this duration to five years.  </p>



<p>The move comes after <a href="https:\/\/worldsoccertalk.com/teams/chelsea-tv-schedule/">Chelsea</a> recently <a href="https:\/\/worldsoccertalk.com/news/chelsea-agree-e100m-deal-for-mykhailo-mudryk-20230114-WST-415528.html">signed Mykhailo Mudryk</a> in a deal potentially worth around $108 million. Not only was it a massive deal, but the Blues also tied down the Ukrainian star to an incredible eight-and-a-half-year contract. This means that Chelsea can value the transfer at just $11 million annually.</p>



<h2>Chelsea smashes spending record, avoids FFP issues</h2>



<p>Mudryk’s contract was one of six similar deals for the Blues since the summer transfer window. Benoit Badiashile and David Datro Fofana both signed six-and-a-half year contracts. Then, Noni Madueke will remain in west London for seven-and-a-half years. Marc Cucurella and Wesley Fofana also signed six and seven-year deals, respectively, from the summer.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<div class="ck-twitter"><blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">Mykhaylo Mudryk is now completing his medical tests as Chelsea plan to have all official contracts signed in the next few hours. 🔵🩺🇺🇦 <a href="https:\/\/twitter.com/hashtag/CFC?src=hash&amp;ref_src=twsrc%5Etfw">#CFC</a> <br><br>Mudryk contract will be valid until June 2030 as it helps the club for Financial Fair Play and amortization. <a href="https:\/\/t.co/rcMOGfrdnP">pic.twitter.com/rcMOGfrdnP</a></p>— Fabrizio Romano (@FabrizioRomano) <a href="https:\/\/twitter.com/FabrizioRomano/status/1614537244001312768?ref_src=twsrc%5Etfw">January 15, 2023</a></blockquote></div><script async="" src="https:\/\/platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>So far this season, Chelsea have a net spend of about $404 million. This is already a <a href="https:\/\/worldsoccertalk.com/premier-league-tv-schedule/">Premier League</a> record for spending in one campaign. New owner Todd Boehly doesn’t seem to be slowing down just yet either. The American businessman is chasing another midfielder, with <a href="https:\/\/worldsoccertalk.com/news/chelsea-chasing-enzo-fernandez-and-moises-caicedo-deals-20230123-WST-416587.html">Moisés Caicedo and Enzo Fernández</a> reportedly under consideration.</p>



<p>Chelsea, like other similar clubs, have to follow two sets of financial rules. The Premier League has profit and sustainability laws that limit total losses over a three-year period to $129 million. UEFA currently allows clubs to spend up to 70% of their revenue on transfers, agent fees, and player wages.</p>



<h5>New changes protect teams, as well</h5>



<p>One source with UEFA has told <em><a href="https:\/\/www.thetimes.co.uk/article/chelseas-long-term-deals-prompt-uefa-to-set-five-year-limit-x8r3x63j3" target="_blank" rel="noreferrer noopener">The Times</a></em> that the new law will also help protect teams as well. “If other clubs start doing the same with eight-year contracts it will be a mess so we need to protect them,” the source said.</p>



<p>“It is simply shifting a problem to the future. Either a club can get stuck with a player on a high salary that they cannot sell, or if they sell him after three or four years they will not realize much profit [in accounting terms] because a lot of his transfer fee has not been amortized.”</p>



<p>Any new rule will not, however, affect previous deals made by Chelsea or any other club. It would only influence future transfers.</p>



<p><em>PHOTO: IMAGO / PA Images</em></p>


UEFA is looking to close a loophole in their FFP rules after Chelsea broke the bank in the January transfer window with record spending.

UEFA to close FFP loophole due to Chelsea long-term deals


<p>Barcelona paid a fine resulting from overspending and triggering the Financial Fair Play regulations. This stems from Barcelona’s acquisition of Dani Alves, Andreas Christensen and extending Ronald Araújo’s contract.</p>



<p>Barcelona’s excessive spending is a much-noted topic. Just this past summer, Barcelona spent well over <a href="https:\/\/www.transfermarkt.us/fc-barcelona/transfers/verein/131" target="_blank" rel="noreferrer noopener">$100 million</a> on Raphinha, Robert Lewandowski and Jules Koundé. However, the issue is more on the contracts. In addition to those three transfer fees, Barcelona brought on Franck Kessié, Andreas Christensen, Marcos Alonso and Héctor Bellerín on free transfers. Those free transfers have ensuing contracts. That is what brings Financial Fair Play into issue with Barcelona.</p>



<p>These FFP rules belong to LaLiga, which does oversee the contracts and wages of its clubs. Moreover, this is in relation to Barcelona’s 2021/22 accounts.</p>



<p>The fine Barcelona faces is around $800,000. However, the club is not willingly answering the fine. Instead, it plans to take the fines to court to challenge the sanctions laid out by LaLiga. There is no date set yet over when any trial would be for Barcelona.</p>



<h2>Barcelona weakened by Financial Fair Play from LaLiga</h2>



<p>Barcelona was only able to attempt the acquisition of these players by pulling a number of ‘levers’ to skirt around LaLiga’s Financial Fair Play. However, as LaLiga President Javier Tebas noted, those were short term solutions to long term problems. </p>



<p>“The levers have worked for them this season but not for the next one,” <a href="https:\/\/www.90min.com/posts/javier-tebas-warns-barcelona-that-economic-levers-wont-help-next-season#:~:text=Javier%20Tebas%20warns%20Barcelona%20that%20economic%20levers%20won%27t%20help%20next%20season,-By%20Jamie%20Spencer&amp;text=La%20Liga%20president%20Javier%20Tebas,good%20to%20them%20next%20season." target="_blank" rel="noreferrer noopener">Tebas said</a>.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<div class="ck-twitter"><blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">🎙 Xavi: "The fans are great. Our main objective this season is to win trophies and make them happy" <a href="https:\/\/t.co/q5BqozifPR">pic.twitter.com/q5BqozifPR</a></p>— FC Barcelona (@FCBarcelona) <a href="https:\/\/twitter.com/FCBarcelona/status/1610250299133902850?ref_src=twsrc%5Etfw">January 3, 2023</a></blockquote></div><script async="" src="https:\/\/platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Barcelona exceeded its salary cap, which is different for each team based on revenue and expenses. Marca notes that <a href="https:\/\/worldsoccertalk.com/news/barcelonas-1-5-billion-debt-how-a-mega-club-fell-into-a-financial-black-hole-and-lost-its-star-20210818-CMS-342353.html">Barcelona’s debt</a> puts a serious limit on the ability to work within its salary cap. Hence, the $800k fine comes at an inopportune time.</p>



<p>Barcelona is not pegged as a major contender in the upcoming January transfer window. The club exhausted much of its transfer budget in the summer window. However, it has performed <a href="https:\/\/worldsoccertalk.com/news/barcelona-miss-opportunity-to-extend-lead-at-the-top-of-la-liga-after-derby-draw-20221231-WST-413964.html">well in the league</a> as a result. That being said, the club did <a href="https:\/\/worldsoccertalk.com/news/inter-push-barcelona-to-brink-of-champions-league-exit-20221012-WST-404079.html">fall in the Champions League</a> group stage for the second-straight year. It now competes in the Europa League.</p>



<p><em>PHOTO: IMAGO / NurPhoto</em></p>


Barcelona faces a fine of around $800k for breaching LaLiga's Financial Fair Play rules after a busy transfer window in summer.

Barcelona hit with Financial Fair Play violation and fine

<p><a href="https:\/\/worldsoccertalk.cms.futbolsitesnetwork.com/wp-content/uploads/2014/07/manchester-city-away-shirt-group-e1410390353978.jpg"></a></p><div><figure class="image"><a href="https:\/\/worldsoccertalk.cms.futbolsitesnetwork.com/wp-content/uploads/2014/07/manchester-city-away-shirt-group-e1410390353978.jpg"><img loading="lazy" class="alignnone size-large wp-image-111462" src="https:\/\/ds-images.bolavip.com/news/image?src=https:\/\/images.worldsoccertalk.com/webp/WST_20140911_WST_116145_manchester-city-away-shirt-group-600x337.webp&amp;width=600&amp;height=337" alt="manchester-city-away-shirt-group" width="600" height="337"></a></figure></div><p></p>
<p>Following <a href="http:\/\/https:\/\/worldsoccertalk.cms.futbolsitesnetwork.com/2014/08/15/manchester-city-2014-15-season-preview-champions-face-unsure-season/">Manchester City</a>‘s protracted battle with UEFA’s Financial Fair Play regulations it came to light yesterday that following an agreement between clubs and European football’s governing body, the money brought in from Manchester City’s fine would be distributed amongst clubs involved in UEFA competitions, including those already fairly wealthy clubs within the Premier League.</p>
<p>City were fined a fee in the region of £50million due to their breach of the regulations although according to <a href="http:\/\/www.independent.co.uk/sport/football/european/manchester-city-ffp-fine-to-be-shared-among-other-champions-league-clubs-9721874.html">Martyn Ziegler</a> in <em>The Independent</em>, the club will only have to pay £20million of that if the club comply with the rules in the upcoming years.</p>
<p>This money will be shared amongst clubs who have been FFP compliant, but is this the correct place for the money to go?</p>
<p>Bayern Munich chairman Karl-Heinz Rummenigge said the concept of FFP compliant clubs receiving a share of the fine had been agreed by UEFA, however, there are a number of clubs including <a href="https:\/\/worldsoccertalk.cms.futbolsitesnetwork.com/2014/09/10/how-will-the-premier-leagues-new-signings-fare-this-weekend/">Manchester United</a>, Chelsea and Arsenal who will receive money which in truth they don’t need.</p>
<p>The concept of FFP is to firstly ensure that there are no repeats of the situations we saw at Portsmouth and Leeds United where a club’s spending far outweighs its income over a sustained period thus forcing the club into financial meltdown at a later date.</p>
<p>Secondly the measures are in place to keep the European game fair to a certain degree. However, handing even more money to the rich is hardly doing that is it?</p>
<p>There are more clubs in need of a slight financial boost than the likes of Chelsea and United, but this is not to say the money recouped from City’s fine should be a form of charity but to ensure the future development of clubs it is important that the money should be used in a positive manner.</p>
<p><a href="http:\/\/www.telegraph.co.uk/sport/football/teams/manchester-city/11085568/Manchester-United-Chelsea-and-Arsenal-to-be-awarded-slice-of-Manchester-Citys-FFP-fine.html">Ben Rumsby’s</a> report in <em>The Telegraph</em> states clubs are set to earn around £210,000 from the measures currently in place. For some clubs at the lower end of the European scale this would be a jackpot. Of course handing out money on a no strings attached basis would breed different issues but at a time when clubs are finding it difficult to not only balance the books but also allocate funding to certain areas this small bonus payment would, to some, be a godsend.</p>
<p>Youth development is a hugely important part of football and one which UEFA has not ignored with record funding going towards projects related to developing football at lower levels. However, even more could be done, particularly with individual clubs, using the money brought into UEFA through City and other clubs’ respective fines.</p>
<p>Restrictions could be placed on the money being shared which would require it to be spent entirely on developing the younger levels of football at a club as well as the youth infrastructure i.e. facilities and more specialised coaching.</p>
<p>Clubs could then focus spending their own revenue on areas of short-term improvements for example, the first-team whilst simultaneously improving their future at no extra and impossible cost to them. In terms of FFP in the long-term this would be a benefit as in theory clubs would produce far better players at an increased rate meaning future high spending on transfers would be less necessary.</p>
<p>Of course on the other hand there will be those who say the fines should go to City’s rivals otherwise it wouldn’t be a true punishment but that isn’t what the process is about.</p>
<p>The money should be kept in football and used for further development of the game where it is needed most. Can anybody truly say the likes of Chelsea, United or even Real Madrid are going to benefit from a payment of just under a quarter of a million pounds?</p>
<p>There will be a meeting this October to discuss any potential changes to the FFP system and whether there are better ways for the money to be used and I for one hope there will be a change of tact and the majority of the money will go to the future good of the game in places which need it.</p>


ALL POSTS TAGGED "Financial Fair Play" - Page 5

Chelsea

UEFA to close FFP loophole due to Chelsea long-term deals

Barcelona

Barcelona hit with Financial Fair Play violation and fine

Financial Fair Play

What Should Happen To Manchester City's Financial Fair Play Fine?