In an economic situation burdened by the health crisis linked to Covid-19, the recruitment of Argentine striker Lionel Messi by Paris-Saint-Germain (PSG), heavily in deficit and with an already large payroll, testifies to the weaknesses of the regulation of the finances of football clubs, argues Jean-François Brocard, lecturer at the Center for Sports Law and Economics at the University of Limoges.
The recruitment of Lionel Messi by PSG, in addition to other hires made in recent weeks, raises questions about the effectiveness of the rules of good management in football. Is financial fair play, instituted by the Union of European Football Associations (UEFA) still useful?
Financial fair play was an evolution, even a revolution, in the management of clubs. It is today undermined, both by the decision of the courts in Europe – it is often challenged either by the Court of Arbitration for Sport or by the European Court of Justice – but also by reluctance of some clubs.
The Covid-19 has dealt a further blow to the ability and willingness to regulate clubs. Financial fair play has been relaxed, and we even wonder if it still exists. To what extent will UEFA be able to say: “We’re back to the starting rules” tomorrow? The various bodies want to save the clubs by telling themselves that, ultimately, we will see later how to develop a sustainable management.
Does the situation particularly benefit clubs like PSG or Manchester City?
This is the whole problem of financial fair play. UEFA’s will at the time [en 2010] was to ensure financial “good management” – although it is not really clear what the expression refers to, other than to avoid regular operating deficits without preventing investors from putting in money. money in football. UEFA had found more or less a way to aim for these two objectives.
With the Covid, authorities no longer have a choice: they are forced to accept the new money that may arrive. However, this comes mainly from countries which were not too affected by the pandemic, in this case those of the Gulf.
Clubs are service companies, which primarily use labor to produce. The main burden is the salary. As long as there are no homogeneous rules at European level – even global – on the wage bill and that there will be formations, as the PSG does today, which will be able to spend astronomical sums, the clubs fierce competition for wages and transfers.
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