Financial Fair Play Rules

2926 Words12 Pages
The elite Spanish and English Football clubs have enjoyed the global football explosion over the last two decades. For example, Barcelona and Real Madrid have used revenue generated from Champions League and the Spanish League to buy the best players in the world at very high prices (Markus 45). This has made the teams become the centre of investment for billionaires who are keen to have a share of the teams. It is from this perspective that the professional soccer teams end up overspending in the name of getting hold of the best players in the world. Moreover, some teams such as Manchester United have been reported to be overstretching their budgets by paying massive interests to its players. This results in losses which might lead to bankruptcy and fall of the football team. By analyzing such trends, professional clubs may end up being in unhealthy financial positions, which throated their survival and the stability of football as a global sport (Homewood para. 10). Based on these concerns, there is a need to regulate the spending of football clubs so as to guarantee that there is a level ground for all top division soccer teams in Europe (Dijk 45). This paper analyzes Financial Fair Play regulations and their effects on professional soccer clubs in Europe as well as their prospective effects on the economy. Background According to Veysey (para. 1), the Financial Fair Play (FFP) rules came into effect as from June 1, 2011. Unanimous votes were secured across Europe for the
Open Document