Financial Fair Play is a law enforced by the European Football Association (UEFA).
According to the regulation, the European Union oversee the clubs’ financial operations over the first two seasons after the rule became effective and gradually lower the deficit until it reaches zero by the 2014–2015 season.
The regulation also places a cap on the amount of money that investors can inject into a club’s budget; this cap was originally set at 45 million but was lowered to 30 million at the conclusion of the 2018 year.
According to the regulation, the European Union will oversee the clubs’ financial operations over the first two seasons after the rule becomes effective and will gradually lower the deficit until it reaches zero by the 2014–2015 season.
And if any club breaks the principles of financial fair play, the European Union takes the appropriate action, which may include providing aid to pay off debts within a certain time frame and taking additional disciplinary action.
As for the punishments, they include warnings, reprimands, levying fines, taking away points, prohibiting the registration of new players in “UEFA,” as well as limiting the number of players registered in European competitions, as was the case with Paris Saint-Germain and Manchester City.
Sanctions can include depriving a team of the opportunity to compete in European competitions, as happened to AC Milan, in addition to depriving the team of one of its championships.
The Fair Financial Play Act compelled teams to look for new ways to invest and make money, as well as to focus on their base of young and talented players rather than relying on the expensive purchase of professional players, whose costs have skyrocketed in comparison to prior years.
