Football is a popular and exciting sport. But beyond the entertainment of watching two teams lock horns in fierce encounters. The world of football is governed by rules and policies every concerned party must play by. Failing with sanctions becomes inevitable.
Following allegations by the footballing body, Union of European Football Association (UEFA). That French club PSG, and Manchester City have breached the UEFA Financial Fair Play rule. Left many wondering what exactly is the Financial Fair Play, and how it works?
What is the FFP?
Many football clubs stand in a more helpful position than some other clubs, not the clubs’ net worth, but also the net worth of their owners. There is, therefore, the propensity of these football clubs to go out of their financial comfort to engage in financial dealings that will risk their future survival.
The Financial Fair Play was therefore put in place by the football governing body UEFA, to prevent such clubs from overspending beyond their earnings, so as not to incur financial liabilities that may risk their long term-term survival.
The FFP was accented by the governing body’s Financial Control Panel in September 2009 but was fully implemented in 2011, the sequel to the 2011/2012 footballing season. According to UEFA, the rule was put in place to assist clubs to live within their means. A UEFA review in 2009 proved that over 300 European clubs suffered financial deficits as a result of overspending, and at least 20 percent of those clubs were in an impending financial crisis. Only a few clubs with rich owners were able to overturn their losses.
Punishment and Sanctions
For every breach of the law, there is a corresponding sanction. The UEFA FFP rules have spelled out sanctions against clubs who breach the FFP regulations. These sanctions include;
Reprimand of the involved club(s)
Payment of fine
Deduction of points
Withholding or denial of earnings from a UEFA contest
Ban on registration of new players for a UEFA contest
Disqualification from an ongoing competition
Ban from participating in further competitions.
These sanctions are in order of severity.
The Manchester City Saga
The club was a subject of financial scrutiny in April 2014, having been listed by UEFA to have allegedly breached the FFP break-even rule.
The football governing body confirmed in May 2014 that a settlement has been reached after the investigations, and appropriate sanctions were handed to the clubs concerned.
Manchester City received a fine of €60m with €40m, and their team decreased to just 21 players for the purpose of participating in UEFA competitions.
The sanctions were however partly relaxed in 2015 after both clubs experienced improved financial incomes.
Quite recently, the football club of Manchester City was slammed with a 2-year ban from further participating in the UEFA Champions League and fined the sum of €30m, for an alleged breach of the FFP and misleading the football governing body.
The club was alleged to have falsified its sponsorship earnings between 2012 and 2016 following leaked emails, which suggested that the club’s owner was the principal funder of the club’s sponsorship deals. On the strength of this allegation, the football governing body launched an investigation, following which the club was struck with a 2-year ban from UEFA competitions.
The club appealed and the decision was overturned by the Court of Arbitrations for Sports (CAS), instead, a fine of €10m was imposed for their failure to corporate with the football governing body.
Conclusion
Despite the objective of implementing the FFP, it has faced wide criticisms from various quarters. It remains to be seen how well, UEFA, can hold on to its break-even policy, in the light of the ever-changing football world.
