Kahn praises UEFA “milestone”: how financial fair play should take effect

Kahn praises UEFA “milestone”
How financial fair play should take effect

Almost two years ago, UEFA severely punished Manchester City on the basis of Financial Fair Play – but they can’t get away with it. The control system is not working properly. Now everything should get better in top European football. Bayern boss Oliver Kahn is thrilled. What will change in the future, what will be the implications and will financial fair play be discussed with the UEFA Executive Committee?

What is Financial Fair Play?

Financial Fair Play (FFP) is a control system for European club competitions. In principle, it should ensure that the European Cup participants do not spend more than they earn. If a club lives significantly and for a long time above its own means, UEFA can impose severe sanctions. UEFA always looks at three consecutive calendar years.

The decisive factor is the so-called “break-even result”, i.e. the difference between the relevant income and expenses. UEFA monitors whether clubs are in deficit or in surplus, allowing a negative deviation in the single-digit million range. A larger deficit of up to 30 million euros should be allowed to be compensated for by shareholders or “affiliated parties”. In December, UEFA fined a total of nine clubs and threatened exclusion from Europe if debts were not paid off quickly.

What should change now?

Officially, the financial regulation is not even on the agenda at the UEFA Executive Committee meeting in Nyon on Thursday. However, the media report unanimously that this is exactly what it should be about. President Aleksander Ceferin is to speak at a press conference afterwards. The new set of rules, which is to be decided shortly, is likely to be introduced successively over the next three years.

The key points are: Clubs should only be allowed to invest 70 percent of their budget in the squad. In addition to transfer fees and salaries, this also includes the fees for consultants. In addition, deficits of up to 20 million euros per season should be allowed to be offset by investors in the future. Although this is an increase on the previous framework, the German clubs, among others, were able to prevent the unlimited financial influence of investors in large clubs. Many details still need to be worked out.

What is the most prominent case so far?

This is Manchester City. In 2020, the English top club was sentenced to two years of exclusion from the European Cup and a fine of 30 million euros “for serious violations” of the financial rules – by UEFA, which was the first time that one of the big players was really tough. However, there was no exclusion because the club of star coach Pep Guardiola lodged an objection and was successful in doing so before the CAS Sports Court. The ban was lifted and the fine reduced from 30 to 10 million euros.

Sanctioning will also play one of the most important roles in the successor model of financial fair play. Fines often do not have the desired effect, especially in well-funded clubs. The new model could anchor that clubs from the Champions League have to go to the Europa or Europa Conference League. That would be a financial, sporting and image-related disaster for world clubs with high standards such as City or Paris St. Germain.

What does the Bundesliga say?

Bayern’s CEO Oliver Kahn was more than satisfied after the general meeting of Europe’s club association ECA last week: “The introduction of financial sustainability as the successor to financial fair play is a milestone. We worked on this model on the ECA Board together with UEFA for many months . I am pleased that we are now doing it that way.”

At Sky, the former world goalkeeper spoke of a “further development” of the system and gave the goal for the coming years: “That at least a slight brake comes in on salaries or transfer fees. Those are big changes that are taking place there. ” At the meetings of the ECA, “not only talks and coffee is drunk”, Kahn clarified.

What other demands are floating around?

Kahn’s predecessor Karl-Heinz Rummenigge called for a “correction of course” in European club football last autumn, in view of the financial difficulties of many clubs. “We need Financial Fairplay 3.0 that is implemented stringently and consistently and that also includes a concrete catalog of penalties,” said Rummenigge of “Welt am Sonntag”.

Specifically, the longtime Bayern boss called the clear definition of sanctions. “When a club violates financial fair play, they must not act in a gray area but must know exactly what to expect, up to and including exclusion from the Champions League.” Rummenigge had also spoken out in favor of “fixed player salaries”.

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