The FIFA Financial Fair Play (FFP) rules are a set of regulations that aim to ensure that football clubs maintain a level of financial stability and fairness in their spending and financial operations. These rules were introduced in 2009 by the governing body of world football, FIFA, to prevent clubs from spending beyond their means and to maintain a level of competitiveness in the sport.
In 2020, the club was banned from European competitions for two seasons but later appealed and the ban was overturned by the Court of Arbitration for Sport (CAS). However, they were fined €30 million for misleading UEFA and failing to cooperate with their investigation.
In 2014, Manchester City were accused of violating the FFP rules by the UEFA (Union of European Football Associations) for failing to comply with the regulations on financial fair play. The club was found to have inflated its sponsorship revenues to hide financial losses and was subsequently fined £49 million, had their Champions League squad size reduced, and were placed under a period of scrutiny to ensure they were adhering to the regulations.
The FFP rules require clubs to balance their spending with their revenue, with a limit on the amount of losses they can incur over a certain period of time. This helps to ensure that clubs do not engage in irresponsible spending and financial practices that could harm the sport as a whole.
In the case of Manchester City, they have since made changes to their financial practices and have been able to demonstrate that they are complying with the FFP rules. They have continued to compete at the highest level of European football and have continued to invest in their squad and infrastructure.
Overall, the FIFA Financial Fair Play rules are important for the long-term stability and fairness of the sport, and all clubs are expected to abide by them.
For the 2022/2023 season, the key FFP requirements include:
Clubs must break even, meaning that their outgoings cannot exceed their income.
Clubs are allowed to incur losses of up to €30 million over the three seasons prior to the assessment period (i.e. 2019/2020, 2020/2021, and 2021/2022).
Any losses incurred in excess of €30 million will be subject to sanctions, which can range from fines to exclusion from European competitions.
Clubs must provide detailed information about their financial accounts to UEFA for review and assessment.
UEFA may also carry out additional monitoring to ensure that clubs are meeting the FFP requirements.
For the 2022/2023 season, it remains to be seen what impact the FFP regulations will have on Manchester City. However, if the club continues to violate the FFP rules, they could face further fines or a potential ban from European competitions.