Money makes the world go ’round.
Football has always been a game of big money, with clubs investing millions of pounds in players every year. However, with this huge influx of cash, comes the risk of clubs overspending and eventually going bankrupt. Financial Fair Play (FFP) is a regulation introduced by governing body UEFA to prevent clubs from spending more than they can afford. Join us here at SinkorSwimSports as we run you through everything you need to know about the FFP in the Premier League.
What is FFP?
FFP was introduced by UEFA in 2011 to prevent clubs from spending more than they earn, in an effort to promote financial stability and fair competition across European football. The regulation requires clubs to balance their books and operate within their means, without relying on wealthy owners to inject money into the club.
FFP is based on three main principles:
- Clubs should not spend more than they earn;
- Clubs should not accumulate too much debt;
- Clubs should not receive more than a certain amount of investment from their owners.
FFP is enforced by the UEFA Club Financial Control Body (CFCB), which monitors the financial activities of clubs and imposes sanctions on those that breach the rules. The sanctions range from fines to bans from UEFA competitions, such as the Champions League and the Europa League.
FFP in the Premier League
FFP regulations apply to all clubs participating in UEFA competitions, including those in the Premier League. Interestingly enough, the Premier League also has its own financial regulations, called Profit and Sustainability (P&S). The P&S regulations are similar to FFP and require clubs to live within their means.
The P&S regulations are enforced solely by the Premier League, which monitors the financial activities of clubs and imposes sanctions on those that breach the rules. The sanctions range from fines to transfer bans and points deductions.
In the 2022/23 Premier League season, all 20 clubs are subject to the P&S regulations. However, some clubs are more likely to be affected than others.
The Impact of FFP
FFP has had a significant impact on European football since it was introduced in 2011. The regulation has helped to promote financial stability and fair competition and has prevented clubs from overspending and going bankrupt.
However, it has also had its naysayers, who claim the landscape hasn’t shifted nearly dramatically enough. Four out of the last Premier League titles have been won by Man City, after all.
What’s more, the stringent governance of how big clubs operate has led to growing tensions between their owners, and bodies like UEFA. One only has to look at how FFP sanctions have impacted Barcelona, for instance. Disgruntlement amongst the European elite helped lead to the failed European Super League project back in April 2021.
Six Premier League teams attempted to join the Super League back in the day but, even with FFP still going strong, critics on the continent have claimed England’s top division has become a ‘Super League of its own‘ following substantial investment in commercial and broadcasting rights.
Red Bulls, James Anderson and Christian Pulisic enthusiast. Still unsure how Wes Brown wrangled himself a Champions League medal – Premier League, Cricket and Major League Soccer contributor at SinkorSwimSports.