Financial Fair Play in Soccer / By: Umar Sheikh

This season, English Premier League Club Everton was docked 6 points for breaching Financial Fair Play (FFP) rules. But what exactly is Financial Fair Play?  FFP regulation rules were introduced by the Union of European Football Associations (UEFA), the governing body of European Football, with the idea of keeping clubs stable financially. The regulations aim to prevent clubs from overspending and gaining unsustainable debt levels. Since its inception, FFP has been a topic of interest as many believe it has a damaging impact on competition and favors larger clubs.  For clubs to be self-sustainable, FFP expects clubs to create profit through common sources such as merchandise, ticket sales, and sponsorship revenue, rather than overly rely on an affluent owner. Over a set period, typically three years, clubs are required to break even, with an “ ‘acceptable deviation’...defined in Article 61 as of €5M” ( Caglio, Lafitte, Masciandro, Ottovanio, 2023 ) . Clubs must make sure their expenses are not larger than their revenue in this time period, or they face the risk of sanctions, fines, bans, and other penalties.  Critics of FFP believe that it favors larger clubs that are more adaptable to the financial restrictions. “My club can’t make anywhere close to the profits that large clubs like Manchester United make. The restrictions don’t seem to matter to them, but they limit us a lot and it’s unfair that two teams in the same league seem to have different rules,” says a current Junior at Walter Payton High School. Supporters of FFP still argue that is the current best path for finance. “ The statistics we have show it's improving in its mission, ” states an anonymous economics professor. One study found income for clubs was a 91% increase in the English Premier League ( Alabi and Uquhart, 2024 ). However the same study found that even though clubs are moving away from losses, it doesn’t necessarily promise the sustainability FFP wants.  Ultimately the issue of Financial Fair Play is a tough one. While the rules help ensure the sustainability of clubs, they struggle to strike a balance and create more competitive leagues. As FFP continues to evolve, it remains a hot topic for fans, clubs, and the UEFA. List Sources: 2- Statistic Links to both article sources https://www.sciencedirect.com/science/article/pii/S1057521924000206?pes=vor https://www.sciencedirect.com/science/article/pii/S2773161823000113 Name of 2 people you interviewed, title/position, email if possible Lawrence li, student Allen sanderson, uchicago professor