The Professional Football Strategy Council (PFSC) has today unanimously recommended that the Financial Fair Play concept be approved by the UEFA Executive Committee at its forthcoming meeting in Nyon on 14/15 September.
This follows unanimous support by the UEFA Club Competitions Committee and the approval by the European Club Association Board (ECA). The PFSC is composed of representatives from the European Professional Football Leagues (EPFL), the players (FIFPro Europe), the clubs (ECA) and the UEFA vice-presidents.
Improving financial fairness
The main purpose of the Financial Fair Play concept is to improve the financial fairness in European competitions and the long-term stability of club football across Europe. In order to achieve this purpose, a set of measures will be put in place including: the obligation for clubs whose turnover is over a certain threshold, over a period of time, to balance their books, or break even, (ie clubs cannot repeatedly spend more than the generated revenues); to provide guidance on salaries and transfer spending; to provide an indicator on the sustainability of the levels of debt; and the obligation for clubs to honour their commitments at all times.
Stimulating long-term investment
These measures, which will reach beyond the current UEFA club licensing system, will stimulate long-term investment (youth development and upgrading of sporting facilities) over short-term speculative spending, and adherence to the rules will be assessed by the recently formed independent Club Financial Control Panel.
Consistent with sporting values
"Financial Fair Play is crucial in order to promote the long-term sustainability of European football and is entirely consistent with the sporting values we have in Europe," said UEFA President Michel Platini. "I have been asked by many clubs right across Europe to take action in order to protect our game. Now, thanks to the forward-looking approach to develop these measures taken by all the stakeholders involved, including the national associations, the leagues, the players, and particularly the clubs, we are all in agreement. The principle has now been established and this is a major breakthrough. Now we will all have to work hard together over the coming months in order to put in place the all-important detail."
Chairman of the European Club Association, Karl-Heinz Rummenigge, said: "The European Club Association is leading the way in the battle for more rationality and discipline in club football finances. On behalf of the ECA, I would like to thank UEFA and especially Michel Platini for his initiative that goes, I believe, in the right direction. We have now agreed on the principles, the objectives and the time frame to start curing our football. Of course, this is still work in progress and we will carry on meeting regularly with UEFA to work on the technical and practical implementation of these measures."
Squad size limits
The proposed measures on Financial Fair Play are to be introduced in UEFA competitions starting from season 2012/13 and will also include a proposal to limit the size of squads, which in turn will help clubs to limit their expenditure on salaries and transfers.
©UEFA.com 1998-2014. All rights reserved.