PSG, City FFP is ready to take advantage of the expected end of sanctions.

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Laos:

Paris Saint-Germain and Manchester City face off in the Champions League on Tuesday after the summer, which clarified their status as the new superpowers of European football, and possible restrictions on their exorbitant spending will soon disappear. Will .

The story of PSG, City and Financial Fair Play (FFP) is basically the story of the last decade in European football.

Sheikh Mansoor of Abu Dhabi bought City in 2008 while Qatar Sports Investment bought PSG in 2010.

Also in 2010, the UEFA introduced the FFP in response to the debt crisis that was drowning out clubs across the continent.

The FFP means clubs cannot lose more than 30 million euros (35 35.2 million) over three years if they want to play in European competition.

PSG and City rivals have consistently asked how the pair can respect the rules when they spend the most, especially when the French side split the two largest transfer fees in history in 2017. To sign Neymar and Killian Mbabane.

PSG were not punished at the time, while City were banned by the UEFA for two years in the Champions League for violating the FFP in February 2020, when they withdrew from sponsorship between 2012 and 2016. Excess income was found.

However, the Court of Arbitration for Sport overturned the ban. Most of the alleged violations, the court said, were “either not established or punctual.”

The decision underscored the FFP’s limitations, and in any case the UEFA responded to the economic crisis caused by the coronavirus epidemic – with an estimated loss of over eight billion euros – of laws. I am softening.

The fiscal years 2020 and 2021 will be assessed together rather than separately. Clubs are also expected to register losses in excess of 30 30 million.

Basically, with the cash-strapped club frustrated, the UEFA realized that there was no point in stopping investing anymore.

“Put money into what they’re saying,” said Rafael Polly of the Football Observatory at the International Center for Sports Studies in Newcastle, Switzerland.

And now it is clear that this relaxation will not be temporary. The UEFA is working on a complete overhaul of its budget rules.

Details are still being discussed, but it is now clear that the stringent restrictions imposed under the FFP will be replaced by the salary limit, which is expected to be 70% of the club’s revenue.

There will be a transition period in which the threshold will gradually decrease, for example the cap can start at 80% of income, then fall to 75%.

This is the same system that is used in American sports, but the introduction of the pay cap across Europe is a critical issue, as the continent’s 55 national federations follow different accounting and tax laws in their respective countries.

In practice, such a cap would do little to stem the tide of inflation. In May, the UEFA claimed that spending on salaries in 2019 accounted for 64% of all clubs’ total revenue, “more than any other industry”.

However, the big change in store for the new wealth of the European game is not the spending wage limit, but instead the removal of the penalty for any game – banning from the Champions League or signing players – for exceeding the limit.

Instead, the UEFA is ready to introduce a “luxury tax”, as President Alexander Saffron has said many times in the past.

For every euro a club exceeds the limit, it has to be paid in a pot and the money will be redistributed to other clubs.

Sefrin warns that the new rules are unlikely to improve the “competitive balance”, which is close to the heart of Slovenia. This will not prevent the distribution of the biggest trophies to only a select few elite clubs.

According to Polly, limiting salary expenses to percentage income will only “stick to the current rankings” because they will still be the richest teams that can attract the best players.

In fact, the luxury tax is likely to strike a balance in favor of oil and gas-rich states or those backed by Olivier Garcزa, for whom there will no longer be any question of possible violations of FFP rules.





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