Get to know Financial Fair Play, Manchester City's Violated Regulations

Get to know Financial Fair Play, Manchester City’s Violated Regulations

UEFA’s Financial Fair Play (FFP) regulations are regulations that often tackle the ambitions of big European clubs.

The main goal of FFP is to prevent the expenditure of professional football clubs more than their income in the pursuit of success. Because UEFA thinks financial problems can threaten the club’s future.

The FFP concept was first introduced by the UEFA Executive Committee in September 2009 and took effect starting in the 2011/2012 season. One factor is because currently a number of football clubs in the Blue Continent are experiencing deteriorating financial conditions. FFP was raised so that soccer could improve in all aspects.

Since enactment, the club is prohibited from spending players beyond their ability, the total income minus expenditure also may not have a minus result.

In this case, the intended expenditure is the transfer fee and the salary of the player and staff. However, the costs of developing young age do not count towards this rule.

Even so, UEFA still tolerates these clubs not to lose up to 45 million euros in three seasons, or 15 million euros in each season.

In the first five years after it was introduced in 2009, club losses and debts due from clubs in Europe’s top divisions decreased by less than 20 percent.

Various punishments are provided by UEFA for clubs violating the rules of financial fair play. Sanctions will be given based on violations committed by these clubs.

Sanctions in this financial fair play start from written warning, fines, deduction of points, not getting UEFA competition bonuses, may not register new players in UEFA competitions, restrictions on player registration in UEFA competitions, disqualification from ongoing competitions, until suspension may not take part UEFA competition in a few years.

Despite having a real impact, not a few big European clubs are trying to be ‘stubborn’ towards this FFP rule.

Manchester City, Paris Saint-Germain and AC Milan are European giants who have dealt with this FFP issue.

Since being taken over by Abu Dhabi United Group Investment and Development Limited in September 2008, Man City has continued to strive to build new strength in Europe.

Large and attractive transfers are carried out by The Citizens every season, but European titles, both the Champions League and Europa League, do not stop by at Etihad.

More than a decade after the takeover Man City actually stumbled over the FFP problem. Manchester Blue is considered to be manipulating FFP data between 2012-2016.

In effect, UEFA imposed severe sanctions on Man City with a ban on playing in the Champions League and Europe in the 2021/2022 and 2022/2023 seasons.

A similar fate experienced by PSG. Qatar Sports Investment took control of Les Parisiens in March 2012. The aim is the same as Man City, becoming the ruler of Europe.

However, until now PSG has only succeeded in becoming a ruler at the domestic level. In the European tournament PSG never reached the Champions League semifinals.

It’s just that PSG’s fate is different from Man City. Although in the past few seasons doing insane transfers like bringing Neymar and Kylian Mbappe at a fantastic price, PSG is still declared not violating FFP.

Meanwhile, due to failing to balance the balance sheet in the 2014-2017 period, Milan were banned from appearing in European competition for two seasons in 2018/2019 and 2019/2020.

The FFP penalty does not merely target big European clubs. On September 11, 2012 UEFA handed down the first penalty for the FFP issue to 23 clubs. Among those 23 are Sporting Lisbon, Atletico Madrid, Rubin Kazan, CSKA Sofia, and Maccabi Tel Aviv.

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