Financial Fair Play rule change

[davieG]

Premier League hand clubs transfer window boost as they scrap inhibiting Financial Fair Play rule that forced clubs to keep wage-bill increases under £7m each year

From July 1, 2019, new rulings have been applied to the football transfer window 

An element of Financial Fair Play ruling has been dropped, in order to help sides 

Teams were previously limited on wages by Short Term Cost Control (STCC)

Now clubs do not have to fund certain wage rises by using commercial deals 

 

Premier League clubs have been handed a boost in the market, after changes to the ruling in the transfer window freed up additional budget for player wages.

Each summer, and January, teams compete against each other to acquire the best talent while adhering to recruitment guidelines and spending within their means.

With Financial Fair Play (FFP) forever looming over top level sides, Premier League teams have always been cautious when taking to the market. Now, however, a rule keeping check on wage bill increases has been removed.

 

As of July 1, an adjustment to the ruling system has increased the scope for clubs to buy players, as report the Times.

As part of the transfer window, clubs have been governed clubs and somewhat limited by Short Term Cost Control (STCC), which was brought into play in 2013.

The STCC meant that any 12-month increase in player wages of above £7m had to be funded by new commercial deals. 

This however has now been dropped, meaning clubs have more room for manoeuvre when it comes to agreeing wage deals with players.

 

Clubs no longer have to be as wary of the total costs of deals being handed out. Under the previous ruling, even if clubs could afford certain wage demands, this would have to be partly made up by the commercial deals to as to show an ability to generate cash flow and spend within their means. 

The change is expected to benefit most clubs, though particularly those who regularly find themselves just below the main competing pack in the Premier League.

Those sides who finished last season in seventh to tenth place, for example, will now find themselves will more freedom to bring in players with the added bonus of being able to offer more enticing wages.

Last season those aforementioned position finishes included the likes of Wolves, Everton, Leicester and West Ham.

These teams have, in previous years, showed both an ability and willingness to spend big in the transfer market.

Likewise, newly promoted sides who have the benefit of the financial windfall of reaching the Premier League will now be able to acquire players more freely, without an immediate worry of how to generate additional capital to show a balanced system.  

 

https://www.dailymail.co.uk/sport/football/article-7200019/Premier-League-hand-clubs-transfer-window-boost-scrap-FFP-rule-limited-wages.html

[FoxesFourLife]

I don't think this will make much of a difference attracting players to the Premier league we pay the best wages any way aside from Barca, Real and PSG 

[sylofox]

Now watch the bank of Wolverhampton open its vaults. 

[sylofox]

19 minutes ago, FoxesFourLife said:

I don't think this will make much of a difference attracting players to the Premier league we pay the best wages any way aside from Barca, Real and PSG 

Obviously it will make a huge difference. A seven mil wage increase could be taken up by just renewing contracts. 

 

Then if you can't off load players to free up wages you can't buy new players. 

[moore_94]

6 minutes ago, sylofox said:

Obviously it will make a huge difference. A seven mil wage increase could be taken up by just renewing contracts. 

 

Then if you can't off load players to free up wages you can't buy new players. 

7 mill wage increase is around £135k a week, which these days amounts to just one really good player, I imagine Youri if we get him won’t be far off the 100k mark

 

Good thing this not being an issue anymore

 

Wage rises for everyone!

[sylofox]

6 minutes ago, moore_94 said:

7 mill wage increase is around £135k a week, which these days amounts to just one really good player, I imagine Youri if we get him won’t be far off the 100k mark

 

Good thing this not being an issue anymore

 

Wage rises for everyone!

I understand that. My point was if you can't off load players. Slim James King your whole £7m could be used on new contracts for Maddison Maguire Kasper and Vardy. 

So then you have no room to bring in new players or 1 on a small wage. 

[moore_94]

Just now, sylofox said:

I understand that. My point was if you can't off load players. Slim James King your whole £7m could be used on new contracts for Maddison Maguire Kasper and Vardy. 

So then you have no room to bring in new players or 1 on a small wage. 

Oh definitely, it was something that can really hold clubs back, pushing the idea of having to sell before you can buy even more onto smaller clubs like is

 

Can definitely see us, Everton, Wolves etc really ramping it up with the quality of signings

 

I imagine it has also been a major reason as to why we previously shopped “cheap” and lower leagues and clubs abroad

[WigstonWanderer]

How do these changes interact with UEFA rules? Not really sure what they are, but is there any similar short term constraint on wage inflation in those? What if a club satisfies the EPL regs but falls foul of the UEFA ones? Would they then get banned from CL or Europa League?