FFP Policies Financial Fair Play policies were introduced in 2009 when the UEFA was concerned about the number of clubs spending more than they were earning in their pursuit of success. The clubs were creating debts that were not sustainable and would have led to bankruptcy for them. The Premier League adopted their own set of FFP, focusing on profitability and sustainability rules. This means that now the Premier League reviews each club’s spending and sets a limit on the extent to which they can keep running a loss. No club is allowed to lose more than £105 million over 3 years. However, this does not include spending on investments in the stadium and training ground, community programmes, women’s football, and youth development instead these are known as ‘add-backs’ and are excluded from the restrictions. These policies allow for each club to prevent unsustainable debt and so prolong their existence. Additionally, each team is restricted in spending meaning no one club can benefit from financial investments and ideally have equal opportunity in the Premier League based on skill levels. Will they be facing any consequences? The club were suspended in 2020 for 2 seasons and fined EUR30 million however this was lifted after an appeal at the Court of Arbitration for Sport (CAS) and the fine was reduced to EUR10 million. The statement was that the breaches were not established and so the club could not be convicted for them. Manchester City were not the only team who have been accused of breaching the policies. Everton and Nottingham Forest were also charged with breaching the profitability and sustainability rules. Everton were deducted 10 points in the league back in November. 6 LAWYER MONTHLY FEBRUARY 2024 Manchester City’s Legal Battle Continues Will they face the consequences? Manchester City Football Club, a prestigious English club which was founded in 1880 has been caught up in a legal fight with the Premier League for several years without any convictions. The Club, which is currently standing at number 2 in the premier league table has been breaching FFP and Premier League policies. These breaches include failing to disclose accurate financial information and managerial remuneration details. The breaches occurred during periods across 2009-2018 in which time the club won the league 3 times. Written By Courtney Evans
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