Paris Saint-Germain is eyeing a £400 million window to leave Liverpool behind.
Many people believe that UEFA’s Financial Fair Play (FFP) rules do not go far enough.
After a 2009 survey revealed that more than half of European clubs were losing money, with some making large losses in the pursuit of success, FFP was agreed on in 2009 and implemented in European football in 2011. It was designed to address the issue of reckless overspend across the continent’s biggest leagues and try to enable more clubs to break even.
The COVID-19 pandemic has wrecked havoc on the football eco-system, forcing even the most powerful clubs to cut costs. Barcelona, for example, had to slash nearly £200 million from their wage bill in order to sign Lionel Messi to a new contract and add Sergio Aguero, Eric Garcia, and Memphis Depay, despite La Liga’s refusal to budge.
Premier League clubs have fared better, thanks in part to lucrative domestic and international television deals, but they, too, have incurred significant losses, with Liverpool expected to lose roughly £120 million as a result of the pandemic.
With losses reported across Europe, UEFA tried to change their FFP regulations to account for the impact of the epidemic on football clubs’ bottom lines, which have been deprived of matchday revenue and have seen decreases in revenue from commercial and broadcast partnerships.
Prior to the pandemic, teams may lose up to €30 million (£25.9 million) over three years if an owner covered €25 million (£21.6 million). Those regulations were eased to allow for bigger losses as long as they could be proven to be caused by the pandemic. Clubs were able to try to deal with their losses as responsibly as possible, which included owners making extra money accessible through shares and loans.
Owners Fenway Sports Group were able to secure a $750 million (£538 million) capital investment from RedBird Capital Partners, who took an 11% interest in the total FSG enterprise. FSG was able to offset some of its losses thanks to the capital inflow and continue with pre-pandemic infrastructure plans. While the money was not utilised in Liverpool’s case. “The summary has come to an end.”