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UEFA Financial Fair Play Regulations

UEFA Financial Fair Play Regulations


Vital Villa member HeathfieldRoad1874 pointed out the new regulations coming into force in a forum thread: UEFA Financial Fair Play Regulations and said:

I apologise if I keep banging on about this, but it is probably the single most important event since the Premier League was started.

Following a discussion on another thread, I thought it might be useful to have somewhere to discuss it properly.

Basically, I've identified the important aspects from the 85 page document issued by UEFA.

Article 53 - Responsibilities of the Club Financial Control Panel

3 The Club Financial Control Panel will at all times bear in mind the overall objectives of these regulations, in particular to defeat any attempt to circumvent these objectives.

Article 58 - Notion of relevant income and expenses

4 Relevant income and expenses from related parties must be adjusted to reflect the fair value of any such transactions.

ANNEX X: Calculation of the break-even result

A. Summary of the calculation of the break-even result

1. The break-even result for a reporting period is calculated as relevant income
less relevant expenses (see Article 58).
2. Relevant income is equivalent to the sum of the following elements (detailed in
part B):
a) Revenue - Gate receipts
b) Revenue - Sponsorship and advertising
c) Revenue - Broadcasting rights
d) Revenue - Commercial activities
e) Revenue - Other operating income
f) Profit on disposal of player registrations (or income from disposal of player
registrations)
g) Excess proceeds on disposal of tangible fixed assets
h) Finance income
Relevant income is decreased if the elements a) to h)
in paragraph 2 include any items below
i) Non-monetary credits
j) Income transaction(s) with related party(ies) above fair value
k) Income from non-football operations not related to the club

To me, Annex X, Part A section 2 j) is the most telling - Income transaction(s) with related party(ies) above fair value.

If anyone wants to read it for themselves, and maybe spot anything I've missed then it available here via pdf download: Click Here



Click here to join in the debate on the club forum.

Writer:HeathfieldRoad1874
Date:Tuesday August 24 2010
Time: 10:31AM

Comments

0
Great, but what's it mean in simple terms
Jongekki
24/08/2010 10:49:00
0
...... or is that the legal term for 'fiddling the books'??
AV-Damo
24/08/2010 11:02:00
0
I think the reasons are good. But taking Man Citeh as the example, their expenditure far exceeds what there income will be for years, even if they won the Champions League, Premier League, FA Cup, Eurovision Song Contest and the world Welly Wanging Championship in the same season. I understand the point about not being able to sell a box worth £30K for £50m to 'adjust' the figures. But how does does that stop rigging of sponsorship, which doesn't have a set price? For example, Man Citeh's expenditure could be £200m over and above what they bring in. One of Sheik Mansoor's 19 (yes nineteen) sons (who doesn't have any legal tie in with the club) could simply be the front man for a sponsorship package of £200m for shirt rights and ground advertising. These deals do not have set prices like the boxes do, but generally go the the company prepared to offer the biggest investment. When the kind of money they have is involved, they will always be able to 'buy' a solution to the problem. So the new laws will probably affect the well run clubs (Villa, Spuds, Bluescouse etc) considerably more than those who benefit from a ridiculously wealthy owner such as Citeh and Chelski.
voiceoftheholte
24/08/2010 12:28:00
0
On another point, Barcelona and Real Madrid are insolvent. They rely on the goodwill of the banks in Spain to provide funds and overdrafts. They can not survive on the income they generate. Do you think UEFA will simply not allow them into European Competitions from 2013 onwards?? They would be akin to turkeys voting for Christmas.
voiceoftheholte
24/08/2010 12:48:00
0
Modern football seems designed to keep a select few clubs permanently successful. Villa, Forest, Spurs, Everton, Leeds, Liverpool.....even Arsenal (all big clubs) might never win the league title again. Why do so many fans continue to bother? Will take a phenomenal effort for Villa to even make the top four. The oligarch and the sheik have damaged English football badly. As voth alluded, Citeh and Chelskov will probably just move the goalposts, when these regulations are implemented.
VillaWillRiseAgain
24/08/2010 12:52:00
0
Sponsorship would come under the related parties regulations. City's current sponsors are owned by a relative of the City board, and as such would be open to scrutiny, and probably taken out of the equation. Any sponsorship deal will have to show complete impartiality. Ignore City for now, they're going mad and I can't see what they will do. I assume they have some sort of plan. Barca and RM - I sincerely hope UEFA are as harsh on them as they will obviously be on English Clubs. Otherwise the whole game goes to the dogs.
heathfieldroad1874
24/08/2010 13:02:00
0
Stourbridge Villan - have you actually read the article or any of the comments? What's the point!!!!!!!!!!!!!!!!!!!!!!!
heathfieldroad1874
24/08/2010 13:08:00
0
The rules were requested, designed and voted in by football clubs. Think about it. Who ultimately benefits from them? The Clubs with large incomes. It stops anyone else joining the Club - it stops the next Man City.

I initially thought that the Hotels and theme parks would also be included, until I saw this

Relevant income is decreased if the elements a) to h) in paragraph 2 include any items below (detailed in part B):

k) Income from non-football operations not related to the club
heathfieldroad1874
24/08/2010 13:33:00
0
OMG it's swear filtration gone mad!!! The word blocked out was s.w.a.n.k.y!
fifthcolumnblue
24/08/2010 13:48:00
0
fifthcollumnblue you always say not to believe any media talk about city as they always tell lies and they all hate city. Yet you still post links from pepers etc, what makes them true? but when they say yaya toure is on 200k a week is not? ps: i dont have a clue what all the nonsense talk is about above, just saw the link to the daily mail so i though id make the point, but correct me if im wrong in my mesaage/
P.Avfc
24/08/2010 14:28:00
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