Happy Eid Kabir celebrations.

     Do you know that the Football world is restricted in its money,loan and general financial dealings?

    Yes!! It is called Financial Fair Play rule

    What is Financial Fair Play? This is a regulatory system which requires European Football Clubs who have qualified for European Competition or who intends to qualify and participate in the future to balance their spending and revenue expenditures, which is often referred to as to 'Break Even'

      This Rule requires even European Clubs with the wealthiest owners  not to overspend beyond their income and stay competitive.

    In other to promote sports development, investments on stadia,training facilities, youth development and women football are excluded from the Break Even calculation.

     A proviso, however exist that allows clubs during a three year period of 2016/17,2017/18 and 2018/19 to spend a maximum of €45 million over and above their Break Even calculation during the three year period.

      Article 15 of The Procedural Rules of UEFA empowers it to implement The FFP Rules.

     The FFP Rules has been described as 'legally fragile' because of its lack of express concurrence with EU laws and operates in grey areas not expressly convered by EU Competition Law but it is in agreement with Article 101 of The Treaty of The Function of EU.

     See The Wouters Case and Meca-Medina Case.

    Measures adopted to ensure Compliance to The FFP Rules include -

☑ Deduction of points from defaulting Clubs.
☑ Withholding of revenues from UEFA Competitions.
☑ Restriction in the number of players to be registered for UEFA Competitions
☑  In extreme cases,withdrawal of Titles/Trophies won.

      AC Milan, Queens Park Rangers(QPR),Atletico Madrid are examples of Clubs that have been banned for contravention of The FFP Rule.

✍🏼 Michael Afolabi Olabisi(MAO),your Sports Lawyer.

No comments