Following the Football Leaks of recent months about Manchester City and Paris St. Germain’s that allege that both clubs broke rules to work around UEFA’s Financial Fair Play, Gazzetta dello Sport have taken a look at the system.
Since the system’s introduction in 2011, it has certainly worked in terms of improving clubs from a financial point of view. In the year of its introduction, clubs in the top European divisions had posted losses of €1.7 billion but in 2017 the same clubs posted profits of €600 million instead.
However, Gazzetta believe that there has been a ‘distortion effect’ as he clubs who have the greatest capacity to generate revenue have benefited most from the system and find their positions at the top solidified.
In 2015, UEFA introduced the voluntary agreement. This agreement was to allow clubs who went through changes of ownership to agree to a repayment plan which would allow them to spend more freely for a certain period.
The most recent update to the system allows UEFA to act immediately when deals over the €100 million mark take place.
