UEFA introduced Financial Fair Play In the 2010-11 season to prevent football clubs from spending more money than they earn to help clubs avoid debt and prevent outside investors from injecting large sums of cash into smaller clubs.
The New York Times (via MilanNews) reports that UEFA will make several revisions to their FFP in the cooking season. They add that the guidelines will be renamed to Financial Sustainability Regulations and believe that such changes will only benefit the Premier League.
The most significant parameter that will be introduced will be that clubs involved in UEFA competitions will not be able to spend more than 70% of their total revenue. Costs will be based on the sum spent towards transfer fees, wages, and other expenses.
To help clubs transition to these changes, UEFA announced that clubs will have three seasons to adapt to these guidelines and that until 2025, the cost of a squad will be able to reach up to 90% of a club’s total revenue. However, there may be some flexibility up to €10 million in specific scenarios.
English clubs are already outspending sides outside of the Premier League, and these rules would only increase the gap between England’s top flight and Serie A. Italian sides often have wage bills that amount to over 70% of their income, posing a huge financial threat to these sides.
Teams that do not abide by these relegations will risk fines, suspensions, and the potential to be relegated to a lower UEFA competition, such as being demoted from the Champions League to Europa League. In addition, clubs may begin UEFA competitions with a points deduction for breaching the new rules.