User:Matthew hk/UEFA financial fair play

=THIS IS NOT PART OF WIKIPEDIA= UEFA financial fair play is a new policy that would in force in 2013. It is a extension of UEFA licensing criteria, which any clubs had to break-even in order to play in UEFA club competitions, namely UEFA Champions League and UEFA Europa League. It was approved by UEFA Executive Committee in May 2010. The first possible club to be excluded is the applicant for 2014–15 UEFA Champions League and 2014–15 UEFA Europa League.

History
UEFA had rejected a number of clubs to have a UEFA license, such as Mallorca in 2009, for financial reason. In September 2009 UEFA Executive Committee approved the concept to set up a a financial fair play.

Criteria

 * The club had to break-even in 3-year aggregate balance, with a acceptable deviation of €5 million (maximum aggregate net loss of €5M). In the first season (license for 2014–15 season) only consist of 2 seasons (2011–12 and 2012–13 or 2012 and 2013)
 * The calculation did not included non-football income (non-relevant income) and non-football cost (non-relevant cost), such as
 * Non-monetary credits
 * Income transaction(s) with related party(ies) above fair value; Income from non-football operations not related to the club
 * Moreover the following cost were excluded/adjusted:


 * Expense transaction(s) with related party(ies) below fair value.
 * Expenditure on youth development activities
 * Expenditure on community development activities
 * Non-monetary debits/charges
 * Finance costs directly attributable to the construction of tangible fixed assets (such as stadium)
 * Expenses of non-football operations not related to the club


 * A transitional policy for 2013–14 to 2017–18 season, which only allowed the club covered the net loss by the contributions from equity participants and/or related parties. The acceptable deviation would be increased to €45 million in 2013 (2 year aggregate), decreased to €45 million in 2014 (3 years aggregate, 2011 to 2014), and €30 million for 2015 to 2017 (3-year aggregate: 2012–15, 2013–16, 2014–17)
 * The club had to submit whole enterprise structure
 * licence season is defined as UEFA season for which a licence applicant has applied for/been granted as: It starts the day following the deadline for submission of the list of licensing decisions by the licensor to UEFA and lasts until the same deadline the following year.
 * Transfer fee had to use amortisation method to calculate the cost (or to calculate selling profit: sell revenue minus un-amortised value) OR "income and expense" method (buy price minus departed price for income/expense)

Clubs and UEFA response

 * Adriano Galliani in response to FFP in the presentation of AC Milan Group 2010 annual result, said the club had to reduce cost.
 * In response to 2011 winter transfer window, such as British record signing Fernando Torres, UEFA said most of the clubs were "increasingly aware of the nature of the financial fair play rules" but "It is...difficult to comment on any individual situation without knowing the long-term strategy of each club", as the rule "do not prevent clubs from spending money on transfers themselves but rather require them to balance their books at the end of the season."
 * FC Barcelona signed an sponsorship agreement with Qatar Sports Investment, for €30 million each season from 2011 to 2016. In 2010–11 La Liga, Barcelona would also received additional €15 million. The deal later revised, which the deal was back loaded.
 * Manchester City F.C. signed an agreement with related parties Etihad Airways for a record stadium naming fee.
 * Massimo Moratti, the president of Internazinoale, said the club had to improve its financial position by other means, as sponsorship from himself and building stadium is not suitable in Italy. Inter sold Samuel Eto'o and replaced by Diego Forlán.
 * On 3 October 2011, Chelsea F.C. proposed to the fans owned company Chelsea Pitch Owners to buy back the club name in order to build a new stadium.
 * Robert Elstone, CEO of Everton F.C., believes UEFA’s new financial fair play rules will make it even more difficult for clubs to upset European football’s established order. (as it is more difficult to achieve sporting goals without increase in investment)
 * After FC Sion started the legal action against UEFA, Arsène Wenger, manager of Arsenal F.C., questioning that did UEFA capable to impose discipline action on big club.

Example of Club financial result (not yet "relevant income" adjusted)
FFP only consider the football club itself instead of the group, except inter-group transaction. However this table contained football club and the group of companies

2011–13

 * http://www.bbc.co.uk/sport/0/football/19557934