FFP is a football stitch-up and an ambition killer by stealth
Financial Fair Play, or FFP, was supposed to be a lifeline for football clubs, preventing them from going under by setting financial boundaries. However, instead of being a saviour, it’s turned into a dream-crusher, stifling clubs’ ambitions to improve.
The system essentially fences off the big-money clubs like Manchester United, whilst putting a lid on the aspirations of medium-sized clubs like West Ham United and Newcastle United. It’s unfair and undermines the competitive spirit of the game, which will inevitably lead to less exciting matches.
The decision by the Premier League to adopt UEFA’s stricter FFP rules is puzzling. Restricting clubs to spending only 70% of their revenue on wages and transfers is a drastic move.
The Premier League are overseeing an FFP football stitch-up
Consider for example West Ham, with a turnover of roughly £200 million per season. Following the 70% rule would leave them with a surplus of £60 million each year. While this money could be used for improved facilities, it could end up sitting idle in club bank accounts. If my understanding is correct the profits (correctly in my opinion) can’t paid out as dividends to shareholders, so why shouldn’t a club be able to spend their profits?
You could have a club sitting on over £100 million, profitable and stable, yet still unable to make new signings. These rules, intended to help clubs, are actually stifling their ambitions.
If the Premier League isn’t careful, they might cook the golden goose, creating a product as predictable as Formula 1 racing.