Mudit Verma, O.P. Jindal Global University
INTRODUCTION
The Financial Fair Play (FFP) was introduced in 2011 by UEFA to ensure financial stability and sustainability within European Football Clubs. FFP’s main objective is to ‘improve the overall financial health of the European club football by preventing clubs from spending more than the revenue it is generating’. Furthermore, it aims to protect clubs from entering into a financial rut that can affect their long-term survival by addressing the issue of excessive spending and financial mismanagement by football clubs. Prior to the introduction of FFP regulations, several football clubs across Europe were over-spending beyond their means and accruing massive debts in the pursuit of success. This uncontrolled spending by clubs, usually state-owned, has set forth concerns about integrity and competitiveness of European club football, as wealthier clubs are gaining an unfair advantage by outspending their rivals in hope for chasing success.
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