What is Financial Fair Play (FFP) rule and which clubs broekn it?

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FFP stands for Financial Fair Play, a set of regulations established by UEFA to prevent professional football clubs from spending more than they earn and getting into financial trouble. The main goal of FFP is to ensure the long-term sustainability and competitiveness of European club football.

The FFP Sanctions rule is the mechanism by which UEFA enforces clubs’ compliance with the FFP regulations. Clubs participating in UEFA competitions must submit their financial statements and break-even calculations to the Club Financial Control Body (CFCB), which assesses whether they meet the FFP criteria.

The FFP criteria include:

A break-even requirement means that clubs cannot have an aggregate deficit of more than 30 million euros over a three-year period unless it is covered by equity contributions from their owners or related parties.
An overdue payables requirement means that clubs must pay their transfer and employee debts on time, as well as their taxes and social security contributions.
A financial information requirement, which means that clubs have to provide accurate and complete financial information to the CFCB and cooperate with its investigations.

If a club’s break-even result exceeds the allowable losses threshold or if it fails to meet the other FFP criteria, it may face sanctions as a consequence of non-compliance with FFP regulations. Sanctions can include fines, transfer bans, points deductions, withholding of prize money, restrictions on squad size and registration of new players, or exclusion from UEFA competitions.

Some examples of teams that FFP sanctions have punished in recent years are:

Manchester City: For failing to meet the break-even threshold in 2014, the club was fined 60 million euros, had its Champions League roster reduced from 25 to 21, and had its expenditure restricted. For overstating its sponsorship earnings and failing to cooperate with the CFCB investigation, the club was initially barred from UEFA competitions for two seasons in 2020 and fined 30 million euros, but the Court of Arbitration for Sport (CAS) reversed the ban on appeal.
Paris Saint-Germain: Due to the club’s violation of the break-even criterion in 2014, it was fined 60 million euros, had to decrease its Champions League roster from 25 to 21 players, and had its expenditure restricted. Reviewing the club’s transfer activities and sponsorship agreements in 2018 revealed no more FFP infractions.
AC Milan: Due to a break-even criterion violation in 2018, the club was given a one-season ban from UEFA competitions; however, the penalty was reversed by CAS after an appeal. The club was again banned from UEFA tournaments in 2019 for the same offense, but this time, it accepted the punishment and withdrew from the Europa League.
Malaga: Due to the club’s delayed debt payments in 2013, it was suspended from UEFA tournaments for a season and fined 300,000 euros. After the club paid its past-due payables, the prohibition was eventually lifted.
Galatasaray: Due to a break-even requirement violation in 2016, the club received a two-season ban from UEFA competitions. The club later consented to a settlement deal with the CFCB, which lowered the ban to one season.