It’s hard to keep up with Javier Tebas and the changes in La Liga’s Financial Fair Play (FFP) rules. A new version of the FFP Rules, dated June 22, 2023, has been posted on the website of the organization running the competition. It will come into effect from the start of the 2023/24 season, i.e. from July 1, 2023.
Although it is difficult to evaluate the new regulations as a whole, since they require a detailed analysis of 268 pages of text (!) And comparison of the current version with the newly published set of rules, the change in Art. 100 entitled “Special Rules for Clubs That Exceed the Spending Limit and Meet Certain Conditions”.
Specifically, paragraphs 1 lit. a) and the point. b) of the referred article, through Increase the percentage of savings that clubs will be able to spend on registering new players.
The new rules are as follows:
– In the 2023/24 season, clubs will be allocated to registering new players 50% Savings achieved (previously – 40%), and in the case of savings representing at least 5% of total expenses – 60% savings achieved (previously – 50%),
– In the 2023/24 season, clubs will be able to allocate 20% of the transfer profits generated to the registration of new players, and in the case of savings representing at least 5% of total expenses – 35% of the transfer profits generated. These rules have not changed from the previous version of the FFP rules.
What does this mean in practice? It will be easier to explain this with a concrete example.
Assuming Frank Casey currently earns €12m in total, his transfer to Saudi Arabia, which was speculated yesterday, for a contract amount of €20m, would generate the following space in FFP:
– 50% of the savings realized (ie 50% of the total of 12 million = 6 million) and 20% of the resulting transfer profit (ie 20% of the 20 million euros = 4 million), ie 10 million euros in total. Before the rule change, it would have been 8.8 million euros.
It should be noted here that the 50% rule will not only apply to savings on player salaries, but also to depreciation for a given season. A detailed article on the consumption amounts remaining for all first-team players can be found here.
In conclusion, the changes to the FFP rules should result in a slight increase in the margin for clubs to operate above the earnings limit in the transfer market. The only question is why it was introduced just before the window started, when sporting directors had puzzled for months over how to meet the stringent requirements, while at the same time drawing up detailed feasibility plans, subject to LaLiga approval. It is also worth noting that FC Barcelona has recently taken a more conciliatory course towards the organization run by Javier Tebas, withdrawing from the lawsuit over the contract with the CVC fund.
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