UEFA should announce the reform of Financial Fair Play soon while will then be put into operation in the coming seasons, a report claims.
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According to the New York Times (via MilanNews), there will be several updates on how FFP operates but one of them will not be a salary cap, because it was not possible to arrive at a solution that would get everyone in agreement.
The new major parameter will be based on revenues and personnel costs – which will be calculated based on the cost of the squad, transfer fees, salaries and other expenses – which for clubs involved in UEFA competitions cannot exceed 70% of total revenues.
To facilitate the transition to these new rules for the next three seasons, the cost of the squad is allowed to be up to 90% of revenues, and clubs that have not previously broken the rules may have a bonus margin of approximately $10m.
Fines, suspensions and possibility of being relegated to a lower UEFA competition (such as from the Champions League to the Europa League) can be introduced.
Not only that, but UEFA will be keeping a much closer eye on inflated sponsorships from companies related to club ownership like PSG, Manchester City and Inter.
