Friday March 20 2020
UEFA revisit FFP regulations?

The future of European football is at stake and UEFA will have some important decisions to make regarding the Financial Fair Play regulations.

UEFA introduced FFP to prevent clubs from spending beyond their means and to avoid having a host of elite clubs carrying unsustainable levels of debt. As the world is currently dealing with a non-football related emergency, the total losses limit of €30m might have to change when football resumes.

Football has been suspended across Europe and many clubs may face an economic crisis due to the long break. According to multiple reports, the talks about derogations of Financial Fair Play has already started in Nyon.

La Gazzetta dello Sport is one of the sources claiming that two commissions have been set up in Switzerland to minimise the deficit European football is facing. The Coronavirus outbreak has already forced Euro 2020 to be postponed to next year and many clubs could be heading towards troubled water as their finances feel the effects.

A similar approach to the suspension of the Stability and Growth Pact, an agreement among the members of European Union aiming at facilitating and maintaining the economic and monetary stability, could be the option for UEFA’s Financial Fair Play.

The COVID-19 outbreak and the postponement of European domestic championships might take down a host of clubs unless UEFA will be lenient and overlook the current period. A host of clubs involved in the Champions League and the Europa League could be affected by the Financial Fair Play. The limit has been set at a €30m deficit over the past three years and UEFA could have to increase their threshold. 

Juventus, Napoli, Atalanta, Inter and Roma are all participating in the European competitions, while Milan have already been through the wringer because of Financial Fair Play, leading to a withdrawal from the Europa League ahead of the current campaign.

Domestic Football Associations across Europe have followed suit and brought in their own form of financial regulation but might have to revisit their guidelines to avoid massive fallout in their own tournaments.

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