UEFA introduced financial Fair Play rules for European clubs

UEFA has introduced and approved new financial fair play rules for European clubs, the core principle of this new rule is the break-even requirement, according to which all clubs cannot continuously spend more than their income. The main purpose of this initiative is to promote financial responsibility among all European clubs.

According to new Fair Play rules clubs will be permitted up to £38.5m in losses during the first period of 2011-12-13. However if the clubs miss these target they will escape sanctions as long as their losses are reduced or if the current debt is due to the spending on transfer fees and wages before 2010.

These new rules can become headache for European clubs, as per UEFA aggregate loss of top European’s clubs was £57.8m, Approx 65% of income was spend on average salaries and 47% of clubs report losses. UEFA introduce new rules after the huge spending by Manchester City as discussed in

English Premier league new rules: Behind the scene

During the January transfer window £225m were spend by English clubs out of which 80% were invested on

 4 players. Chelsea, Liverpool and Aston Villa all break their banks for the record signings of English football history. Currently Manchester City, Chelsea and Aston Villa are the one who could face the allegation unless they change their habit. Despite huge debts put on the Manchester United by Glazers they are likely to pass UEFA new Fair Play rules.

Clubs that breach the rules will not be granted a UEFA club license to take part in European competitions.