UEFA Evaluating Possibility Of Suspending FFP Rules Due To Coronavirus (Mail)

Despite the thoughts of
many, football is not immune to a global recession, and that is exactly
what is going to be caused by the coronavirus outbreak which has forced
businesses and institutions to close, reports Mail.

UEFA Evaluating Possibility Of Suspending FFP Rules Due To Coronavirus (Mail) 1

As such, UEFA is evaluating the possibility of lifting the Financial Fair Play (FFP) rules on clubs for a temporary period.

With
matches being suspended across the continent, European clubs are
starting to feel the pinch financially, with a decrease in income
forcing clubs to adjust their pre-arranged budgets.

Without
any further details having been given, leagues in both France and Italy
have proposed cuts to salaries being paid to players.

At
this point it seems inevitable that the economic landscape of football
is going to be changed for the foreseeable future, with clubs losing a
lot of money that they had either already spent or budgeted to have in
the future.

Common sense would then dictate that keeping the
Financial Fair Play rules in place, as they are currently, would be an
unfair measure on every single club at this time.

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UEFA Evaluating Possibility Of Suspending FFP Rules Due To Coronavirus (Mail) 2

Clubs
have thus appealed to UEFA to change or abandon the current FFP format
at this time, with Fox Sports Italia reporting that the governing body
will soon meet with the International Football Association, the
Association of European Clubs and representatives from various leagues
to decide just what the next step on this topic is.

These
groups will discuss the expected limits that can be expected on finances
in football caused as a result of the COVID-19 virus and it’s hoped a
plan to move forward will be agreed upon.

Clubs hope to
suspend FFP entirely for one year, with many clubs expecting to move
into significant debt in order to get their sporting projects back up
and running once things get back to normal.

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In life away
from football we’ve already seen measures be brought into place to help
people who are to be impacted by the long-standing interruption to
everyday life.

The European Union suspended the stability
pact that it held with each member country that will now allow them to
spend more than they can afford in response to the coronavirus outbreak.

MARCA
has consulted with UEFA sources who have confirmed that this meeting is
merely a ‘first step’ towards a more widespread response to the current
climate that has been created by the outbreak of the newest strain of
coronavirus.

The FFP rules dictate that only an
extraordinary event or circumstance beyond the control of clubs can be
considered as reasoning for suspending the FFP regulations in place.

What is Financial Fair Play?

UEFA launched the initiative in 2011 and it covers all clubs that participate in both the Champions League and Europa League.

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In
order to obtain permission to enter the tournament, clubs must show
that they have no outstanding debts with other teams or players, and
that they are up to date with the tax agencies in their respective
countries.

In simplistic terms, the general rule of thumb
for clubs since 2011 has been to not spend more than they earn, however
since the 2014/15 campaign UEFA has assessed the financial figures for
clubs over a period of three seasons.

UEFA Evaluating Possibility Of Suspending FFP Rules Due To Coronavirus (Mail) 3

UEFA
acknowledge that there may be a reasonable level of debt for a club to
be in created by the environment of football, so a spending margin is
given to clubs as long as it is covered by a direct contribution from
the club’s owner or sponsors.

For the season that has just
ended, clubs are able to spend an additional 30 million euros, although
that was expected to decrease for 2020/21 prior to the coronavirus
crisis.