UEFA President Aleksander Ceferin intends to complete his plan to reform “financial fair play” by the end of the year.
UEFA President Aleksander Ceferin wants to see his plan to reform “financial fair play”, a rule introduced in 2010 prohibiting clubs from spending more than they earn, by the end of the year. “I think we have to do it this year, we will start to work seriously on it in September,” said the boss of European football on Friday in an interview with AFP in Rome, a few hours from the opening of the Euro (June 11-July 11).
This device was supposed to clean up the management of clubs, while their sporting rivalry pushes them to spend in defiance of any accounting logic. He encountered a number of practical difficulties and was accused of freezing positions in Europe for the benefit of historical leaders assured of high revenues.
“It works very well but now you have to adapt to different times, modernize it with new tools. The gap between the big clubs and the small clubs is getting bigger and bigger. I don’t think we can completely end this disparity, but we can at least reduce it a little, “Ceferin said.
The idea of a levy called “luxury tax”
Among the ideas put forward, and which were already to be discussed a little this Friday in Rome, a levy called “luxury tax” aimed at forcing clubs spending beyond a certain limit to pay “a certain sum which goes to other clubs that respect financial fair play, ”Ceferin said. He also mentioned the possibility of limiting the number of players in a workforce: “We do it in the Champions League, but the leagues do not do it” in the national championships, he noted, pleading so that ” the whole ecosystem is working together to find solutions “.
This reflection comes in a financially difficult context for European clubs, whose health crisis is expected to cut revenues by 8.7 billion euros over the two seasons 2019/20 and 2020/21, estimated in May a UEFA report. . However, it is all the more difficult for them to save as their salary costs have continued to increase over the past ten years. They now absorb more than 60% of revenue, a ratio “significantly higher than any other industry,” observed UEFA.