UEFA introduced Financial Fair Play in 2011 to stop clubs spending more than they earn. The idea: clubs should break even over a 3-year period. Losses up to €30M are allowed if the owner covers them. In practice, clubs find creative ways around it — just ask PSG and Man City.
The Premier League has its own version: clubs can lose a maximum of £105M over 3 years. Everton were docked 8 points in 2023-24 for breaching PSR. Nottingham Forest got 4 points deducted. The rules are real — and they bite.
Amortization: A £100M signing on a 5-year deal costs £20M/year on the books. Sell a player for £1 and it's pure profit. That's why clubs do bizarre swap deals — it's accounting, not football.
Infrastructure spending: Stadium and training ground investments are excluded from FFP calculations. That's why every rich club is suddenly renovating their stadium.
Commercial deals: Sponsorship from related parties (like Emirates sponsoring Arsenal, or Etihad sponsoring Man City) can be inflated. UEFA now assesses "fair value" of these deals.
Depends who you ask. Small clubs say it protects the status quo — rich clubs stay rich. Big clubs say it prevents reckless spending. Man City were charged with 115 FFP breaches. The case is still ongoing. If found guilty, they could face a points deduction or even relegation. If cleared, FFP critics will say the rules are toothless.