10 years on : the impact of financial fair play on the management of football in Europe

Abstract

‘10 Years On – The Impact of Financial Fair Play on the Management of Football in Europe’ is a comprehensive study on the first ten years of Financial Fair Play Regulations. Chapter 1 describes how the UEFA Club Licensing System evolved to incorporate a set of financial regulations, aimed at improving the financial sustainability of European football clubs during a period where massive losses were being reported. The two principal elements making up these regulations, the no overdue payables and the break-even requirement are explained. Reference is also made on how the Covid-19 pandemic affected the finances of football clubs, forcing UEFA to act by introducing temporary amendments to aid football club in times of reduced revenue. Chapter 2 deals with the significant effects of these regulations on football clubs. It starts by describing the function of the CFCB and how it was restructured to make it more efficient. The main features of the voluntary and settlement agreements are highlighted. This chapter also probes into how sanctions are applied by examining an interesting case, AC Milan v UEFA, which ultimately impacted the club with a disqualification from European club competitions. Attempts at circumventing the regulations are dealt with in the following chapter. Two cases are analysed, which although might seem similar in nature, have different outcomes. These cases revolve around the related and non-related party transactions and feature the notion of fair value. Chapter 4 tackles the legal challenges, with particular focus on the Striani case, which perhaps was the most stimulating one to date. The last chapter focuses on improvements, with an introduction to the very recent revamped regulations, the ‘UEFA Club Licensing and Financial Sustainability Regulations’. It also touches upon the three pillars on which these new regulations are based.