UEFA are set to scrap the current Financial Fair Play (FFP) regulations in favour of a system that will provide clubs with greater freedom over their spending power.
The new rules will allow clubs to have more control over their finances and in particular in the transfer market according to the Italian newspaper Gazzetta dello Sport.
Further information regarding the rules that will replace the ten-year-old FFP system will be discussed on Friday 25 March in a video conference between UEFA and the European Parliament.
Clubs to be consulted before implementation
The move away from the Michel Platini and Gianni Infantino FFP rules will only come into place with the agreement of clubs, with UEFA said to be “unlikely to want to impose itself on clubs without dialogue.”
The current FFP regulations were designed by UEFA’s Financial Control Panel with the European Club Association at first appealing the introduction of FFP and successfully delaying its introduction. The new rules will see the clubs consulted before they are implemented.
Spending what is necessary
Once a set system has been designed and accepted by all parties, including compiling with EU law a gradual adaptation period is expected to begin in 2022. With full implementation of the rules to come at a later date.
The redesigned system is to be a “transition from the idea of ‘spending as much as you collect’ to ‘spending what is necessary without waste,’” according to Italian journalist Fabio Licari in Gazzetta dello Sport.
The new regulations could also see an “introduction of a salary cap, to be disguised as a luxury tax to ensure compliance with European regulations.”
This would mean there would be a total limit that clubs could spend on wages throughout the playing squad, how the budget for each club is figured out has yet to be announced.
Introduction of economic sanctions
Currently, clubs that fall foul of FFP can, in theory, be expelled from competing in European competitions, a sanction that was handed down to Manchester City until they successfully appealed the ruling at the Court of Arbitration for Sport.
This punishment would no longer be so prevalent under the proposed regulations with sporting sanctions expected to be reduced in favor of greater economic sanctions for the clubs which break the parameters.
UEFA have already begun designing the new regulations and once they have discussed them with the EU Parliament they will take them to the clubs for consideration before a final decision on the implementation schedule is taken.
The likes of Chelsea, Arsenal and Tottenham will be waiting with baited breath for news from UEFA as any change in regulations could see the clubs rethink their financial policy and in turn, their transfer plans for the upcoming transfer windows.
Were the clubs to be granted a greater license to spend the extra financial power of the Premier League clubs is likely to impact what money is available for new signings.
This could see big spenders Chelsea further strengthen their squad with their European counter-parts unlikely to have the finances to compete when it comes to a bidding war for players such as in-demand striker Erling Haaland.