What does financial fair play mean in football?
The UEFA Financial Fair Play Regulations (FFP) were established to prevent professional football clubs spending more than they earn in the pursuit of success, and in doing so not getting into financial problems which might threaten their long-term survival.
Does the Premier League have financial fair play rules?
In addition to Company Law, the Premier League has its own Rules relating to club finances, accounting and good governance. The most widely known FFP policies are probably UEFA’s. These pertain to the licensing system for teams who wish to take part in European club competitions.
How does the financial fair play rule work?
The Financial fair play (FFP) was introduced by UEFA in 2009 to ‘improve the overall financial health of European club football. Essentially, FFP is a regulatory tool to prevent clubs from spending more than their stipulated budget, which could inadvertently plunge them into debts.
Is FFP legal?
The structure of FFP makes the regulation illegal under the European Union’s competition law. The predicted effect of FFP on the player market and competition between teams clearly violates EU competition law.
How do football club make money?
This can be broken down into several different departments, with ticket sales being the most obvious one. Given that clubs are able to charge money to every single person that enters the stadium on the day of a game, it’s no surprise that those with bigger stadiums make the most money.
How is FFP calculated?
The FFP limit of a club is calculated in terms of revenue (income from matchday sales, TV rights deal, advertising, player sales and prize money) against a club’s spending (activity in the transfer market and employee benefits including player and staff wages).
How does PSG have so much money?
PSG’s strong financial position has been sustained by the club’s lucrative sponsorship deals with several commercial partners, including the Qatar Tourism Authority, Nike, Accor and Air Jordan. Throughout their history, though, PSG have rarely been profitable.
How is PSG so rich?
PSG’s strong financial position has been sustained by the club’s lucrative sponsorship deals with several commercial partners, including the Qatar Tourism Authority (QTA), Nike, ALL and Air Jordan. Throughout their history, though, PSG has rarely been profitable.