UEFA on Thursday approved new licensing regulations to replace its existing Financial Fair Play (FFP) rules, allowing European clubs to make bigger losses than before but limiting spending on wages and transfers.
As expected, European football’s governing body decided to overhaul the FFP rules that were introduced in 2010 in order to reduce spiralling debts among clubs across the continent.
FFP’s limitations had been exposed by the emergence of state-held superpowers like Manchester City and Paris Saint-Germain.
“The biggest innovation will be the introduction of a squad cost rule to bring better cost control in relation to player wages and transfer costs,” UEFA president Aleksander Ceferin announced at a press conference in Nyon, Switzerland following a meeting of the body’s executive committee.