LaLiga, which implements the strongest financial fair play norms in football anywhere, has spent years advocating for stronger financial fair play rules at European level. The proposal to be considered at the UEFA Executive Committee on April 7 is a major step forward for European football, providing financial sustainability and responsibility and restricting the ability of state-owned clubs to commit financial doping.
The current “Financial Sustainability” proposal includes key concepts to strengthen the future of European football:
· Solvency: increased enforcement of the fulfilment of overdue debts.
· Market value: expanding the obligation to value all operations at market value (both with related parties and with unrelated third parties).
· Stability: through the Football Earnings Rule, which measures balanced results, supplemented by limited and reasonable capital contributions.
· Squad cost control: based on the new Squad Cost Ratio concept, which limits the squad cost to 70% of income.
As a member of European Leagues, the organization of 36 professional football leagues representing more than 1,000 clubs in 30 countries across Europe, LaLiga actively participated over the past months to come to the current proposal.
"Economic sustainability in football is very important as there are hundreds of thousands of jobs that depend on the clubs and the leagues,” said LaLiga President Javier Tebas. “This is a historic moment, implementing squad spending limits at European level for the first time and demanding that operations be market based, countering the destructive inflationary effect of state-owned clubs.”