What Is Financial Fair Play In Football? [The Definitive Guide]

Financial Fair Play is a common term in football but in truth, not every football fan understands what it means.

The talk about Financial Fair Play rules comes up often because clubs like Manchester City and PSG are accused of breaking the FFP rule.

Recently, Valencia coach wondered how Barca were able to afford Ferran Torres (for €55 M) and their plan to sign Halaan without breaking the FFP rule despite Barca’s current debt status.

In 2014, both Manchester City and PSG were fined €60 million, got their squad reduced to 21 players for UEFA competitions, their transfers spending and squad salary were severely restricted.

These types of stories are common. So, it is necessary to ask the question again – what is financial fair play in football?

What is Financial Fair Play In Football?

Simply put, without boring you with unnecessary details, Financial Fair Play Rule football governs football clubs such that they do not spend more than they make.

In addition, the FFP rule also ensures that football clubs balance their books, manage their losses and debts within a specific timeframe, and pay up important expenses (like players’ salaries.)

Also, it must also be mentioned that the FFP rule was initiated by UEFA (not FIFA.)

Why UEFA Initiated the FFP Rule in Football

UEFA believes that they are “protecting the game” by implementing the Financial Fair Play rule in football. How?

There were “serious and worsening financial conditions in European club football“. So, in a bid to make the situation better, UEFA initiated the Financial Fairplay Rule.

Consider Reading: Champions League Winning Managers who got hired mid-season

List of Clubs Punished By UEFA For Breaking FFP Rule

SN	Club	Origin Nation	Punishment	Date
1	Vojvodina	Serbia	fined €10,000	December 21, 2012
2	Arsenal Kyiv	Ukraine	fined €45,000	December 21, 2012
3	Osijek	Croatia	fined €100,000	December 21, 2012
4	Dinamo București	Romania	fined €100,000	December 21, 2012
5	Rapid București	Romania	fined €100,000. They were handed a one-season ban from European competition	December 21, 2012
6	Hajduk Split	Croatia	fined €40,000	December 21, 2012
7	Malaga	Spain	fined €300,000 and handed a one-season ban from European competition	March 31, 2013
8	Astra Ploiești	Romania	withheld prize money for not paying outstanding payments	September 20, 2013
9	Metalurh Donetsk	Ukraine	Handed a one-season ban from European competition and fined €80,000	December 20, 2013
10	Skonto	Latvia	Handed a one-season ban from European competition and fined €40,000	December 20, 2013
11	Trabzonspor	Turkey	withheld prize money for not paying outstanding payments	September 20, 2013
12	Zrinjski Mostar	Bosnia and Herzegovina	withheld prize money for not paying outstanding payments	September 20, 2013
13	Petrolul Ploiești	Romania	handed a one-season ban from European competition and fined €50,000	December 20, 2013
14	Pandurii Târgu Jiu	Romania	fined €40,000	December 20, 2013
15	Śląsk Wrocław	Poland	fined €20,000	December 20, 2013
16	Anzhi Makhachkala	Russia	fined €2 million, of which €1 million was suspended. Squad for UEFA competitions reduced to 21 players, and one-year squad salary restrictions imposed	May 16, 2014
17	Bursaspor	Turkey	fined €200,000 fine, and one-year squad salary restrictions imposed	May 16, 2014
18	Galatasaray	Turkey	fined €200,000, and one-year squad salary restrictions imposed	May 16, 2014
19	Levski Sofia	Bulgaria	fined €200,000, and one-year squad salary restrictions imposed	May 16, 2014
20	Rubin Kazan	Russia	fined €6 million, of which €3 million was suspended. Squad for UEFA competitions reduced to 21 players, and transfer spending restrictions and two-year squad salary restrictions imposed	May 16, 2014
21	Trabzonspor	Turkey	fined €200,000, and one-year squad salary restrictions imposed	May 16, 2014
22	Zenit Saint Petersburg	Russia	fined €12 million fine, of which €6 million was suspended. Squad for UEFA competitions reduced to 22 players, and transfer spending restrictions and two-year squad salary restrictions were imposed	May 16, 2014
23	Paris Saint-Germain	France	find €60 million, of which €40 million was suspended. Squad for UEFA competitions reduced to 21 players, and transfer spending restrictions and two-year squad salary restrictions imposed	May 16, 2014
24	Manchester City	England	fined €60 million, of which €40 million was suspended. Squad for UEFA competitions reduced to 21 players, and transfer spending restrictions and two-year squad salary restrictions imposed	May 16, 2014
25	Astana	Kazakhstan	fined €2 million, of which €1.5 million was suspended. Squad for UEFA competitions reduced to 22 players, and transfer spending restrictions were imposed. Required to break even by 2018	May 20, 2016
26	Dinamo Zagreb	Croatia	fined €200,000. Squad for UEFA competitions reduced to 23 players and required to break even by 2016	May 20, 2016
27	Fenerbahçe	Turkey	fined €7.5 million, of which €5.5 million was suspended. Squad for UEFA competitions reduced to 22 players. Transfer spending restrictions imposed, required to reach a defined employee benefit expenses to revenue ratio, and required to break even by 2019	May 20, 2016
28	Trabzonspor	Turkey	fined €2 million, of which €1 million was suspended. Squad for UEFA competitions reduced to 22 players. Transfer spending restrictions imposed, required to reach a defined employee benefit expenses to revenue ratio, and required to break even by 2018	May 20, 2016
29	AC Milan	Italy	banned from European competitions for a year	June 28, 2019

Value of FFP Rule in Football

In truth, the FFP rule has helped football in many ways. Let us highlight some of them.

Without the FFP rule, clubs can afford to go into debt uncontrollably.
In reality, football clubs that truly comply with the FFp rules look more “financially responsible” than others.
Ideally, there should be economic and financial stability among clubs that follow the FFP rules.
Clubs are forced to operate within how much they make.
Lenders are protected because the FFP rule ensures that football clubs pay their debts.

Criticism of The FFP Rule

Of course, the Financial Fair Play rule is not perfect. While the motive of inventing the rule itself is positive, many football clubs and experts have criticized the FFP rule.

The Financial Fair Play Rule is accused of favoring only the rich clubs while smaller clubs are not protected by the rule.
As we’ve seen in the table above, most of the clubs punished for the FFP rule are small clubs.
Club owners now try to outsmart the rules by manipulating their books just to pass the “FFP test”.

Further Reading: