The signing of Lionel Messi of Paris Saint-Germain has rekindled debate over the effectiveness of the UEFA’s Financial Fair Play (FFP) rules, which were designed to curb high costs but were caused by the corona virus epidemic. There has been a softening in the last year.
These rules were introduced in 2009 to prevent clubs from spending more than their resources and distorting the market, which requires teams to break up and keep wages and transfer fees according to income.
PSG and Manchester City were among the clubs to break the rules, although both teams avoided excessive punishment after winning an appeal through the Court of Arbitration for Sport.
Relaxation of rules to help clubs deal with the financial scourge of the epidemic, however, neither PSG nor City – which last week bought Jack Grellish for 100 100 million (13 138 million) in the Premier League. The transfer record was broken. About a new investigation into their costs.
“We know the rules of financial fair play and we will always abide by the rules and regulations,” PSG chairman Nasir al-Khalifa said in Macy’s presentation on Wednesday.
“Before we do anything, we check with our business, financial and legal people. We have the ability to sign it. If we sign Leo, it’s because we can, otherwise we Don’t do that. “
According to a KPMG report, PSG’s revenue for 2019-20 was 541 million euros, while its wage bill was 405 million euros.
Their spending on salaries has increased over the past year, however, after Giorgione Vignaldum, Sergio Ramos and Gianluigi Donaruma signed free transfers, they have been allowed to offer bumper wages in exchange for transfer fees.
PSG have also handed out 60 million euros from Inter Milan to fullback Echraf Hakimi, while Messi’s signature – who will receive a 25 million euro sign-in fee and an annual salary of 63 million – further boosted his wage bill. Has given.
Meanwhile, the club’s revenue has fallen due to epidemics and the breach of the French League’s television rights agreement, but for now they have no obligation to break it.
According to Andrea Traverso, UEFA’s director of financial stability and research, the Break Avon principle could be completely removed, which in April was described as “pointless” in the aftermath of the epidemic.
Trevorso suggested that the new rules should focus on the present and the future, rather than punishing clubs for past abuses.
The UEFA declined to comment on what the future of the financial fair will look like or whether the easing of the break-even roll has cleared the way for PSG’s Messi to sign.
Another important rule change from the UEFA was allowing owners to spend their money to reduce losses, which is in the hands of the city, which is funded by Qatar-backed PSG and Abu Dhabi. Gone but provided little relief to the fan-owned Barca.
The Catalans were also at the mercy of La Liga’s financial fair play rules, which set each club a maximum budget each season based on its projected earnings.
Barca’s budget for the 2019-20 campaign was 1 671 million, down from 7 347 million last season due to epidemics.
For the next campaign, it is reported to fall between 160 million and 200 million, making it impossible for Macy to make a new deal.
PSG, by contrast, benefited from the French Football Federation deferring the requirement to spend only 70% of its clubs’ salaries.