How does Financial fair play?

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The newly anointed Champions Manchester City looming for violation of the Financial fair play of UEFA, the exclusion of the Champions League season 2019/20. What exactly is Financial fair play and how does it work?

1. What Financial fair play is and since when it exists?

UEFA says about her under the name of “Financial fair play” (FFP) current rule: “The Financial fair play is to improve the financial health of European club football.” The set of rules was presented in 2010 as a successor-concept of the UEFA club licensing procedure and introduced in 2013. It is designed to prevent clubs spending more money than you are taking them according to the UEFA, so help them to get long-term financial hardships. The then UEFA President, Michel Platini, said in 2010, something had to “be against the financial Doping” done.

2. How much money allowed to spend on the club?

Under UEFA President Michel Platini’s Financial fair play regulations 2013 was introduced

According to the UEFA regulations, the clubs in the so-called assessment must spend a period of time (three years), five million euros more than they earn. The loss may increase to a maximum of 30 million euros, provided the club owner or an Investor are able to compensate this loss immediately. Since 2015, the scheme that the investments in stadiums, training facilities, youth development and women’s football must not be taken into account in the calculation is valid.

The directly with the game operating the professionals the relationships are costs such as transfer spending and player and coach salaries have to be according to the Financial Fairplay which is in equilibrium with the revenues from TV marketing, the operation of the game in their own stadium and all the commercial activities, such as the sale of merchandise,. The clubs must comply, under all circumstances, their Transfer and salary obligations, and shall not postpone costs into the future, to Pay a certain amount of time to be beautiful.

3. It is Sponsoring taken into account in the calculation?

Sponsorship is the Financial fair play regulations is a grey area. The UEFA rule States: “a Shoots a club through a sponsorship agreement with a company with which it is in relationship, money, is make the competent UEFA body investigations and, where appropriate, the calculation of the Break-even result for the sponsorship revenues to adjust market prices accordingly.” This formulation is not a clear basis and the question of which procedure is against the rules, room for interpretation on the part of UEFA, the hits in each individual case, an individual decision. This point in the regulations is prone to abuse.

4. What are the consequences of bringing Rule-breaking with you?

For the enforcement of the Financial fair play was established by the UEFA club financial control body (CFCB). It usually speaks of warnings, fines, and transfer of locks that were slaughtered by clubs such as Manchester City and Paris Saint-Germain in the past, already miss. The range of sanctions is diverse and provides for the deduction of points, the block Grant Transfer and the exclusion from UEFA before the competition, which currently threatens the City,.

5. PSG has violated the obligation of Neymar against the FFP?

The Transfer of Neymar to PSG should be the cost of 222 million euros and came under dubious circumstances, able to

In the case of the Neymar transfer from Barcelona to PSG, UEFA came to the conclusion that the approach of PSG, a investigation justify. PSG appealed, but the court of arbitration for sport (CAS) appeal. The CAS ruled last March in favor of PSG, and also decided that the case cannot be taken up again in the future. The Neymar Transfer had a volume of 222 million euros. It is the suspicion in the room, that the sum of the Parts, declared as an additional sponsorship from the Qatar Tourist Authority (QTA) in Barcelona has been paid to the Financial-fair-play-handle rule to.

6. Is well-founded, the Financial fair play legal ?

UEFA says that the Financial fair play is in line with EU law and explains further: “The UEFA was in a permanent dialogue with the European Commission about Financial fair play and has always maintained support for the Initiative.” Legal disputes has not prevented, however. Jean-Louis Dupont, the Belgian lawyer who played in 1995 a key role on the way to for Transfers in European football major “Bosman ruling”, a put 2013 claim. As justification, he argued that the Financial fair play contrary from his point of view against European competition law. The European court of justice rejected the claim.

7. Where flow through the Financial fair play caused fines?

The UEFA does not indicate that it retains fines and instead, according to an established formula among the clubs distributed. 80 percent of the collected fines are distributed evenly to the Teams that compete in the group stage of the Champions and Europa League. In the season 2016/17, for example, the 78,300 in Euro per club were. The remaining 20 percent of the money will be divided among the Clubs who failed in the qualifying rounds of these competitions.