UEFA have today announced changes to their Financial Fair Play rules, aimed at preventing a repeat of Chelsea’s massive spending spree, and requesting closer analysis of capital gains after the Juventus scandal.
There was a summit today to discuss the adjustments to various competitions, including the renaming of the Europa Conference League to simply the Conference League.
In an attempt to stop Chelsea’s tactic of signing new players to extra-long contracts that allow them to spread the amortisation, UEFA have introduced a limit of five years, even if the contract is longer.
This however will not be backdated, meaning that the current Chelsea deals will remain intact and can continue to use the extra time for amortisation.
Financial Fair Play will also change, introducing the squad cost ratio, so spending on salaries, transfers and commissions cannot amount to more than 70 per cent of the club’s revenue.
That will only be in full swing by 2025-26, as it will be introduced gradually starting at 90 per cent in 2023-24 and 80 per cent in 2024-25.
Although not technically a change as such, UEFA have now urged everyone to stick to the ‘international accounting principles’ when it comes to calculating capital gains.
This comes after Juventus were docked 10 Serie A points for artificially inflating transfer fees to boost capital gains, although the club’s lawyers and former President Andrea Agnelli continue to insist their methods of accounting were within the interpretation of the rules.
UEFA aim to ‘dissuade’ the use of transfers that are performed purely to boost capital gains rather than for sporting reasons.
All club accountants are urged to confirm the correct application of the rules and signal any discrepancies.