💰 Financial Fair Play (FFP) Explained — Complete Guide

What is Financial Fair Play?

Financial Fair Play (FFP) is UEFA's regulatory framework designed to prevent clubs from spending more than they earn. Introduced in 2011, it aims to promote financial stability in European football.

The Key Rules

Break-Even Rule: Clubs cannot report aggregate losses of more than €30M over three years (with owner equity injections allowed up to €30M).

Squad Cost Ratio: From 2025-26, clubs must keep squad costs (wages + amortization + agent fees) below 70% of revenue.

Football Earnings Rule: Clubs must demonstrate they can fund their football expenditure from football-related revenue.

What Happens If You Break FFP?

Sanctions range from warnings and fines to squad registration restrictions and competition bans. Manchester City faced 115 charges. PSG and Chelsea have been investigated.

Premier League PSR (Profit and Sustainability)

The Premier League has its own version: clubs cannot lose more than £105M over a rolling three-year period. Everton were deducted 8 points in 2023-24 for breaching these rules.

Does FFP Actually Work?

Critics argue it protects established rich clubs and prevents newcomers from investing. Supporters say it prevents clubs from going bankrupt (as happened to Rangers, Bury, and many others).