As expected, UEFA have relaxed Financial Fair Play regulations in the wake of the COVID-19 pandemic, postponing the break-even assessment until next year.
It was evident that the crisis and three-month lockdown, not to mention resuming the season behind closed doors, had a huge effect on the finances of even Europe’s top football clubs.
With the very real risk of sides going bankrupt or unable to prove their financial stability, UEFA took some off the pressure off by easing the FFP rules.
As expected, UEFA have relaxed Financial Fair Play regulations in the wake of the COVID-19 pandemic, postponing the break-even assessment until next year.
It was evident that the crisis and three-month lockdown, not to mention resuming the season behind closed doors, had a huge effect on the finances of even Europe’s top football clubs.
With the very real risk of sides going bankrupt or unable to prove their financial stability, UEFA took some off the pressure off by easing the FFP rules.
The most important change is that the break-even assessment – where clubs in the Champions League and Europa League must prove they do not spend more than they earn – will be calculated in 2021 and not in 2020.
The figures will be worked out together after that longer period, giving flexibility and time to meet transfer and salary obligations.
In Thursday's statement, UEFA announced the assessment of financial year 2020 is postponed for one season, and will be assessed together with the financial year 2021.
The 2020-21 monitoring period is curtailed and only covers two reporting periods (financial years ending in 2018 and 2019).
The 2021-22 monitoring period is extended and covers four reporting periods (financial years ending in 2018-2019-2020 and 2021).
The financial years 2020 and 2021 are assessed as one single period.
The adverse impact of the pandemic is neutralised by averaging the combined deficit of 2020 and 2021 and by further allowing specific Covid-19 adjustments.