UEFA Executive Committee gives a nod to new financial sustainability regulations

The new regulations' main goal is to ensure financial sustainability.

The new UEFA Club Licensing and Financial Sustainability Regulations were agreed upon by the UEFA Executive Committee in Nyon.

The rules are the first major revisions to UEFA’s financial rules since they were implemented in 2010.

Aleksander Eferin, the President of UEFA, stated: “The major goal of UEFA’s initial financial restrictions, which were implemented in 2010, was accomplished. They aided in the recovery of European football’s finances and revolutionised the management of European football clubs. However, the evolution of the football industry, combined with the pandemic’s unavoidable financial consequences, has demonstrated the necessity for comprehensive reform and new financial sustainability standards.

“UEFA has worked together with its stakeholders across European football to develop these new measures to help the clubs to address these new challenges. These regulations will help us protect the game and prepare it for any potential future shocks while encouraging rational investments and building a more sustainable future for the game.”

The new regulations’ main goal is to ensure financial sustainability. Three major pillars that will be used to attain these goals are solvency, stability, and cost reduction.

The new no overdue payables regulation (towards football clubs, employees, social/tax authorities, and UEFA) would better safeguard creditors in terms of solvency. Controls will be undertaken every quarter, and late payers will be given less leeway.

The adoption of a squad cost rule will be the most significant change in the new regulations since it will provide tighter control over player salary and transfer expenses. Wages, transfers, and agent fees are all limited to 70% of club revenue under the rule. Assessments will be completed on a timely basis, and any violations will result in financial penalties and sporting sanctions.

The new regulations will be practised from June 2022.

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