Manchester City agree terms of Financial Fair Play settlement with Uefa
Manchester City announced on Saturday that they have agreed to a settlement with Uefa over its Financial Fair Play (FFP) regulations. Covering three seasons (2013/14, 2014/15 and 2015/16), City will be subject to ongoing restrictions that Uefa, in a statement released, stated would ensure the English Premier League club “becomes break-even compliant within the meaning of the FFP in a short space of time”.
Manchester City agree to pay a total amount of €60 million (Dh301.8m) that will be withheld from any revenues it earns from participating in Uefa competitions commencing in season 2013/14. Of this, €40m will be withheld conditionally and returned to Manchester City if the club fulfils the operational and financial measures agreed within FFP.
For the duration of the settlement, the club will be subject to a limitation on the number of players it may include on the “A” list for the purposes of participation in Uefa competitions, and they may only register a maximum of 21 players instead of 25. If the club manage to comply with the annual break-even target, the club shall be released from the restriction as regards the registration of players in Uefa club competitions for the 2015/16 season.
City also agree to significantly limit spending in the transfer market for seasons 2014/15 and 2015/16.
The Uefa release also states that Manchester City must report a maximum break-even deficit of €20m for the financial year ending in 2014 and a maximum break-even deficit of €10m for the financial year ending in 2015.
Employee benefit expenses cannot be increased during the next two financial periods (2015 and 2016). If Manchester City meet the annual break-even requirements outlined above, this spending limit will be removed for the 2016 financial period.
In their official reply to the settlement, Manchester City said in a statement: “In normal circumstances, the club would wish to pursue its case and present its position through every avenue of recourse. However, our decision to do so must be balanced against the practical realities for our fans, for our partners and in the interests of the commercial operations of the club” and that they have “complied with the FPP regulations on this and all other matters”.
According to L’Equipe, Paris Saint-Germain’s settlement arrangement is similar to Manchester City’s. Other clubs cited and reaching settlements for violation of FFP are Bursaspor, Anzhi Makhachkala, Rubin Kazan, Zenit St Petersburg, Galatasaray, Levski Sofia and Trabzonspor.
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Published: May 16, 2014 04:00 AM