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Financial Fair Play in Soccer
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Flashcards
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UEFA Club Licensing
A set of criteria that clubs must fulfill to participate in UEFA competitions, which includes financial benchmarks to control spending.
Break-even Requirement
Clubs must not spend more than they earn over a three-year period, limiting unsustainable investment and promoting financial stability.
Monitoring Period
The timeframe during which UEFA assesses clubs' financial records for compliance with Financial Fair Play regulations.
Acceptable Deviation
The permitted financial loss over the monitoring period, which allows for some flexibility in club spending while still promoting overall financial health.
Related Party Transactions
Financial deals between a club and entities closely linked to club owners, which are scrutinized under FFP to prevent artificial inflation of club revenues.
Sponsorship Fair Value
Sponsorships must reflect fair market value and UEFA assesses deals for inflated values designed to circumvent FFP spending regulations.
Sanctions for Non-compliance
Penalties for not adhering to FFP rules can include fines, points deductions, withholding of revenue from UEFA competitions, and transfer bans.
Football Leaks
The release of confidential documents in 2018 that brought attention to potential violations of FFP rules by high-profile clubs.
Oversight by Club Financial Control Body (CFCB)
The CFCB is responsible for reviewing club finances and ensuring compliance with FFP regulations.
Squad Size Limitation
Financial constraints may lead to limits on the number of players clubs can register, impacting transfer and wage spending.
Voluntary Agreements
Clubs may enter into agreements with UEFA to reach FFP compliance over time, potentially affecting immediate spending plans.
Transfer Fee Amortization
The practice of spreading a player's transfer fee over the life of their contract for accounting purposes, influencing the club's financial statements and FFP compliance.
Wages to Revenue Ratio
A measure of financial sustainability, clubs must balance player salaries against their total revenue, a key factor in FFP assessments.
Youth Development Investment
Investments in youth academies can be exempt from FFP break-even calculations, encouraging clubs to develop homegrown talent.
Stadium Investment
Long-term investments in infrastructure like stadiums may also be exempt from break-even requirements, affecting how clubs allocate spending.
UEFA Revenue Distribution
Revenue from UEFA competitions is a significant source of club income and is factored into FFP assessments of club finances.
Third-Party Ownership Ban
The prohibition of third-party ownership of players' economic rights, designed to give clubs greater control over finances and transfer decisions.
Agent Fees Regulation
UEFA's limits on agents' fees can influence the overall cost of transfers and contract negotiations, factoring into club budgeting for FFP purposes.
Financial Sustainability Ratings
A proposed system to rate clubs on their long-term financial health that could affect access to UEFA funds and permissible spending levels.
Multi-club Ownership
Ownership of multiple clubs can complicate FFP compliance, with potential conflicts of interest and related party transactions requiring additional scrutiny.
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