Neymar:UEFA Open Financial Fair Play Investigation into PSG transfer

The Union of European Football Association (UEFA) has announced Financial Fair Play review investigation, if the multi-million pound transfer window spending of Paris Saint- Germain, and whether it has complied with financial fair play (FFP) rules requiring clubs to break even.

The decision to investigate came on board when Real Madrid and the Spanish league president Javier Tebas, that PSG are flouting the rules. The £198m signing of the Brazilian striker Neymar from Barcelona last month was by far the most paid for any footballer ever, and PSG followed that this week with a complicated £167m signing of the 18-year-old forward from Monaco, Kylian Mbappé.
However, FFP rules ban clubs from spending more than their generated revenue, a policy introduced to prevent rich owners from trying to buy success and distorting the transfer market.

Clubs can ultimately be kicked out of European competition for flouting the rules although until now UEFA has tried to negotiate settlements with offenders.

The (UEFA) statement said its financial control board had opened “a formal investigation into Paris Saint-Germain as part of its ongoing monitoring of clubs under Financial Fair Play (FFP) regulations”

“The investigation will focus on the compliance of the club with the break-even requirement, particularly in light of its recent transfer activity,” UEFA added.
whether PSG have breached the rules still cannot be taken until the end of the financial reporting period.

But the Uefa committee has taken the unusual step of investigating in order to support the credibility of the FFP rules and monitor how PSG account for their mammoth spending.

The committee will also be able to examine the means of funding the Mbappé signing, following reports that PSG will use an initial loan period, which will delay the actual payment to Monaco until the following financial year.theGuadian said.

UEFA, has power to ban clubs from the Champions League as well as impose heavy financial sanctions, created the Financial Fair Play regulations and ‘break-even’ rules to ensure clubs balance their spending with their revenue.

Deloitte figures, as reported by the ​BBC, PSG made a profit of €10m on revenue of €520.9m euros in the 2015/16 financial year.

PSG in a statement said it was “surprised” by Uefa’s approach and was “very confident in its ability to demonstrate that it will fully comply with Financial Fair Play rules for the fiscal year 2017/2018.”

This is the not the first time the Qatar sovereign wealth fund QSI club PSG have been investigated under FFP rules and even received a fine and spending cap for previously breaking regulations with excessive spending.

Potential sanctions for a breach of FFP range from withholding Champions League prize money and reducing the size of a club’s squad, to the strongest measure of exclusion from the competition.

Related Post

Comments

comments