Ang UEFA Executive Committee now approved the new regulations of Club Licensing and Financial Sustainability at their meeting in Nyon. This regulation is the first major reform of financial regulations of UEFA since it was first introduced in 2010. There are some new things it has introduced, especially in spending on salaries and transfers, that cannot exceed 70% of total revenue.
The introduction of a staff cost rule to better control costs related to player salaries and transfer costs is the great new thing in the new regulations. Rules limits spending on salaries, transfers and agent fees to 70% of club income. Reviews will be conducted in a timely manner and violations will result pre -determined economic sanctions and sporting measures.
UEFA President Aleksander Ceferin commented: “UEFA’s first financial regulation, introduced in 2010, fulfilled its primary purpose. It helped lift European football finances from the abyss and changed the way football was conducted. management of football clubs in Europe.However, the evolution of the football industry, together with the inevitable financial impact of the pandemic, showed the need for total reform and new regulation of football. Maintenance financial “.
“UEFA has worked with various stakeholders from across European football to develop them new steps to help clubs face these new challenges. This regulation will help us protect football and prepare it for any potential future shocks, while encouraging good investment and building a more sustainable future for the game. “
In this nomenclature, it is not surprising that the main purpose of the new regulation is to achieve financial sustainability. This is achieved through three main columns: solvency, stability and cost control.
Referring to solvency, the new rule of no overdue debts (to football clubs, employees, social/tax authorities and UEFA) will ensure better protection from lenders. Controls will be carried out quarterly and there will be less tolerance for those who are late in their payments.
The new requirements on the benefits of football are an evolution of current break-even requirements, and will bring more financial capacity of the clubs. To make it easier to apply to clubs, the calculation of football earnings is similar to the break-even point calculation.
Although the the acceptable deviation increased from 30 million euros over three years to 60 million euros in three years, the requirements to guarantee fair value of transactions, improve the balance of clubs and reduce debts are greatly restricted.
The new regulation will take effect on June 2022. The app will be gradually for three years to give the clubs the time they need to adapt.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
