Top European clubs will be restricted to spending not more than 70% of their revenue on their teams under new ‘sustainability regulations’ issued by UEFA’s executive committee.
The new approach will take over the previous Financial Fair Play system and initiates a ‘squad cost rule’ that will restrict spending on wages, transfers and agent fees.
The 70% figure will be reached following a 3 year transition period, gradually plunging from 90%.
“UEFA’s first financial regulations, introduced in 2010, served its primary purpose,” UEFA president Aleksander Ceferin stated at the Executive Committee meeting in Nyon.
“They helped pull European football finances back from the brink and revolutionised how European football clubs are run.”
“However, the evolution of the football industry, alongside the inevitable financial effects of the pandemic, has shown the need for wholesale reform and new financial sustainability regulations.”
UEFA further added that bearable losses will double from €30 million ($32.74 million) over 3 years to €60 million euros over the same period.
The new regulations will be applicable from June 2022.
The matter of Russia’s membership of UEFA was not on the list of the UEFA meeting however Ceferin proposed that it remained under consideration after the seizure of Ukraine.
“There are considerations about many things these days. Day by day, hour by hour, the situation is changing and again I would not be a serious UEFA president if I would first speak to the media and then speak to the Exco or general assembly or whoever,” stated the Slovenian.
Russia has conveyed interest in a bid to conduct the European Championship in 2028 or 2032 nevertheless Ceferin denied to discuss that hope.
“I won’t comment on any bids, UK bid or any other bids, but we are discussing about it and you will have the answer very soon,” he stated.
The United Kingdom nations and Ireland have made a declaration of interest to organize the 2028 tournament apace with Turkey and Russia.
Italy, along with Turkey and Russia, have stated they aim to bid for 2032.
Ceferin stated discussions over the qualification format for the new look Champions League, which will start in 2024/25 remained preceding however a final decision is to be made next month.
UEFA were strong competitors of the FIFA plan for a two-yearly World Cup and Ceferin mentioned he was glad that the idea had been withdrawn by global soccer’s governing body at their congress in Doha last week.
Questioned regarding possible alternative tourneys, Ceferin stated, “It is good that they have listened to the football community (about the biennial World Cup). I don’t think there is much time for new competitions but let’s speak about it and see. For now we didn’t discuss it. For me it is very good that this project which is more or less a nonsense is off the table.”