The Impact Of Ffp Regulations On The Competitive Balance Of The Football Club

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BMAN31391 ECONOMICS OF SPORTS S/NO: 9327588 Introduction The UEFA Financial Fair Play (FFP) Regulations have come to terms in 2009 and it has been widely discussed due to the nature of the rules that was imposed on the clubs. The aim of this essay is to discuss the impacts of FFP Regulations on the competitive balance in European Football. The first section of this essay is an introduction to the UEFA FFP Regulations. Secondly, introduction of the Fort and Quirk Model will be used to analyse the effects of competitive balance. Thirdly, summaries of sports economists’ view on the FFP Regulations are reported. The final section will be a conclusion on the effects of UEFA FFP Regulations on the competitive balance of the leagues. UEFA Financial Fair Play Regulations The UEFA FFP Regulations is about improving the financial health of European football club (UEFA, 2014). The regulation was implemented at the end of 2012 season where all clubs had to abide to the rules and regulations to obtain the license to play in the UEFA Champions League (UEFA, 2010). Deloitte (2014a, p. 2) refers the FFP break-even requirement as ‘a change potentially as profound as that brought about by the Bosman ruling.’ The main objectives are being documented in UEFA’s 2014 ‘Club Licensing and Financial Fair Play Regulations’ handbook (refer to Appendix). The break-even rule will prevent clubs from spending more than what they could earn. Clubs have to adhere to aggregate

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