Fair Play System of the UEFA and the English Premier League

Fair Play System of the UEFA and the English Premier League
1. Introduction
Thesis Statement
The Financial Fair Play Regulations will prove beneficial to the English Premier
League.
The chief objective of this research is to analyse the effects of the UEFA
Financial Fair Play Rules, with respect to the English Premier League and its
stakeholders. The main objective of the Financial Fair Play(FFP) is to secure the
fair play. Its norms were framed with an aim to ensure the management of
football clubs in an organised manner.

This work will argue that Financial Fair
Play norms will prove to be advantageous to the English Premier League.
Although the Fair Play norms impose restrictions on the management of the
clubs, they are aimed at achieving overall benefits, such as promoting the
integrity of the competitions, protecting the financial stability of clubs,
encouraging youth development and promoting infrastructure investment.
Implementation of the Financial Fair Play (FFP) System norms could benefit the
English Premier League in several ways.
2. Arguments with Respect to Benefits
A. Competitive Spirit

The FFP system will enhance the competitive spirit among the football clubs.
The objective of the Financial Fair Play (FFP), as per the UEFA, is to rebalance
competition and to improve the long – term financial stability of European club
football. The means to procure this is by imposing a break – even requirement.
This condition restricts the deficit of a club and limits the influence of investors
and patrons(Vöpel , 2011, p. 59).

Some examples of externally acquired finance
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are money from patrons or equity participants. However, such amounts can be employed to defray the cost of infrastructure or youth development activities. (Vöpel , 2011, p. 56).

As such, UEFA, under the FFP regulations, requires clubs to break even. In other words, clubs should not rely on benefactors, and should spend only what they earn from commercial sources. Club owners have been permitted to underwrite losses up to £36.3million over the FFP’s first three seasons(Kelso, 2012, p. 9).These initiatives will help the soccer play in improving competitiveness without any impediments.
B. Fairer Management
This FFP system would make the management of the clubs much fairer by ensuring financial stability to the football clubs. The FFP regulations of the UEFA aim to achieve the following goals. The first of these relates to assisting the extant licensing regulations, to improve the financial stability of the professional football clubs.

In addition, this is expected to ensure the smooth functioning and integrity of the competitions, while according protection to the creditors to the professional football clubs. Another goal is to restrict the possibility of financial doping or the borrowing of huge amounts by a sports franchise or its owner, in order to induce high performing players to join its club. Such activity relies on this short term and risky venture, instead of depending upon the revenue that the franchise can generate on its own(Müller, et al., 2012, p. 126).
The football league clubs voted in favour of adopting the financial fair play system of the UEFA, from the beginning of the 2012 – 2013 season. This limits their spending to just what they earn.

The salary paid by League One clubs will be limited to a specified maximum, and teams will be permitted to spend on the wages of players, only up to a fixed percentage of their total turnover. With regard to League Two clubs, the extant cap will be reduced by 5% to 55%(Football Extra, 2011). These initiatives will make the spending of the clubs, as well as their accountability much fairer.
Fair Play System and the English Premier League 3
C. Stop Clubs going Bankrupt
The FFP system would help the football clubs to avoid financial risks by imposing restrictions on the expenditure.

Most of the clubs prefer cost control measures. Some of the ideas that have come to the fore include adoption of the financial fair play system of the UEFA. This system requires clubs to break even, or to restrict the proportion of their annual income that they spend on their players.

In this context it has also been suggested that such spending should be restricted to a tenth of the annual income(Premier League clubs to discuss spending controls , 2012). A major option relates to clubs having to guarantee that they can operate for several years in the future. This would constitute a safeguard against bankruptcy.
D. Promotion of Youth development

The FFP system is seized with the development of youth. This can be seen from the fact that these norms did not affect expenditure on youth facilities. The FFP is based to a major extent on financial considerations.

However, the benefits of this initiative by the UEFA are certain to prove beneficial for football, with special regard to the youth. One of the reasons for this assertion is that the UEFA has not included expenditure on youth development as one of the items of football related expenditure. This categorisation will ensure that concerns related to balancing income and expenditure will not extend to investment related to youth facilities(Lo, 2012).

This argument evidences the fact that the FFP is seriously concerned about youth development, in the context of soccer.
E.Clubs being used to make rich people richer and financially viable.

The magnitude of the Premier League is astonishing and it involves a tremendous amount of money. United’s chief executive Gill had been very active in persuading European clubs to adopt the FFP rules of the UEFA. This was with regard to the Europa League and Champions League. Gill had frequently expressed his desire to ensure that the………..

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