West Ham will avoid falling foul of European Financial Fait Play rules after an announcement that they are to be scrapped.
West Ham lost £65m last season and £28m the season before that. The losses over a three year period cannot be greater than £75m.
The Hammers would have been at risk from UEFA Competitions if they made a further loss this season so the removal of the UEFA FFP eliminates that threat!
Football’s financial fair play rules will be abandoned with the key break-even measure declared “purposeless” by Uefa.
Speaking on Thursday at a meeting between Uefa and European Union officials, Andrea Traverso, Uefa’s director of research and financial stability, said a solution was “not easy”
“Covid 19 has generated a revenue crisis and had a big impact on the liquidity of clubs,” he said. “This is a crisis which is very different from anything we have had to tackle before. In such a situation obviously, clubs are struggling; they have difficulties in complying with their obligations.
“I think in general rules must always evolve. They have to adapt to the context in which clubs operate. The break-even rule, the way it works now it looks backwards: it performs an assessment of a situation in the past [looking at profit and loss over three previous seasons]. The pandemic represents such an abrupt change that looking to the past is becoming purposeless.
“So maybe the rules should have a stronger focus on the present and the future and should definitely have stronger focus on the challenges of high levels of wages and the transfer market. The solution of this is not easy.”