European football’s governing body Uefa has confirmed the adoption of new “financial sustainability regulations” to replace its controversial financial fair play rules (FFP).
The biggest change under the new system will see clubs’ spending on wages, transfers and agents capped at 70 per cent of revenue.
The financial sustainability regulations will apply to all teams playing in the Champions League and other European competitions, and are due to be phased in from this summer.
“Uefa’s first financial regulations, introduced in 2010, served its primary purpose. They helped pull European football finances back from the brink and revolutionised how European football clubs are run,” said Uefa president Aleksander Ceferin.
“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 has worked together with its stakeholders across European football to develop these new measures to help the clubs to address these new challenges.
“These regulations will help us protect the game and prepare it for any potential future shock while encouraging rational investments and building a more sustainable future for the game.”
Uefa’s executive committee officially approved the rules at a meeting in Nyon, Switzerland, today. It comes 10 days after top teams gave the change their blessing at the general assembly of the European Club Association.
Other features of the new rules include a relaxation in the amount clubs are permitted to lose over a rolling three-year period.
The 70 per cent cap will be phased in over three years to allow clubs to adapt to the limit. It will start at 90 per cent before falling to 80 per cent after a year, and then 70 per cent 12 months later.