Uefa introduces 70% squad cost rule | Breaking News

Uefa has introduced the 70% squad cost rule which will start in June 2021and clubs will have three years to implement them.

The new financial regulations will limit clubs’ spending on wages, transfers and agents’ fees to 70% of their revenue.

It is reported that clubs are expected to be to spend 90% of their income in 2023 and 2024, reducing to 80% in 2024 and 2025 and 70% in 2026.

Meanwhile, new reinforced punishments, including points deductions, demotion to lower-ranking competitions and potential exclusion from European football completely, will be introduced as part of the new regulations.

A Uefa statement read: “breaches will result in pre-defined financial penalties and sporting measures.”

“While the acceptable deviation has increased from 30m euros over three years to 60m over three years, requirements to ensure the fair value of transactions, to improve the clubs’ balance sheet, and to reduce debts have been significantly strengthened.

“The biggest innovation in the new regulations will be the introduction of a squad cost rule to bring better cost control in relation to player wages and transfer costs.

“The regulation limits spending on wages, transfers, and agent fees to 70% of club revenue.”

Aleksander Ceferin, president of European football’s governing body added: “Uefa’s first financial regulations, introduced in 2010, served its primary purpose.”

“They helped pull European football finances back from the brink and revolutionised how European football clubs are run.

“However, the evolution of the football industry, alongside the inevitable financial effects of the pandemic, has shown the need for wholesale reform and new financial sustainability regulations.

“These [new] regulations will help us protect the game and prepare it for any potential future shock while encouraging rational investments and building a more sustainable future for the game.”

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