UEFA financial regulations to be challenged in court

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UEFA’s financial fair regulations are going to be challenged in the courts of Europe due to a players agent being upset that the rules are restricting the total amount of money that a player can earn.

The Belgium agent, Daniel Striani, has placed a formal complaint with the EC stating that the rules are unfair since they require clubs in the EC from 2011 forward to financially more forward. Lawyer Jean Louis-Dupont will represent Striani. Louis-Dupont successfully challenged contract rules in 1995 for Jean-Marc Bosman and won allowing Belgium players from that point forward to move without any costs at the completion of their contracts.

This time around Dupont believes that he will once again beat the rules outlined by UEFA even if they are argued additionally by the European Commission. He stated that the regulations that are supposed to help prevent financial losses from occurring at clubs will have many adverse consequences that are not competitive.

The very first argument he plans to make is that by not allowing a club to run at a loss they will not be able to make any proper investments. The second argument is that it will give an unfair advantage of rich clubs and will secure their power in the league making it hard for any other team to rise up as Manchester City has done in the past.

In addition, he plans to argue that the FFP simply wants to reduce wages and transfer fees which is obviously anti-competitive and not fair to the players because it will end up reducing the amount of transfers that take place on a regular basis as well as the number of players that actually end up on a contract with different clubs. Over time this will also lead to salaries of players decreasing.

Wage capping could protect clubs from financial hardship

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Something of a doomsday scenario has come over the Football League as clubs are struggling with the rules that limit the amount of turnover that can be spent on the wages of players. Championship clubs have also recently just voted to say that they would prefer to have the same financial rules that are seen in Leagues one and two.

The sort of rules that would be implemented in the championship would mean that it is less difficult for the clubs to fall into significant amounts of debt, and risk collapsing.

The chairman of the football league is Greg Clarke and he has commented, “These new regulations are going to create more financially sustainable football clubs. They are going to lay a foundation for creating a more responsible sport where clubs are less able to rack up large debts very quickly.”

The chairman has also said that the rules are going to be brought into effect next season and any clubs that are not being in compliance with the rules are going to face transfer embargoes as well as significant fines. He has also said however that these fines will not start being handed out until the season after that in order to give clubs an opportunity to get used to the new rules and restrictions.

A lawyer who specialises in sports at the law firm Field Fisher Waterhouse, Daniel Geey has commented, “These sort of regulations are going to help ensure the football clubs are able to break even and that they do not take on a large amount of debt.

Fortunately, there is some leeway and it means that these rules will not be too restrictive on clubs, just enough to protect them from themselves. It is a good idea for them to have implemented the grace period before they started implanting finds in the 2014 season.”

Sanctions are also going to be put onto clubs that are not able to break even. Over the next five years these are going to be gradually increased so that clubs are able to improve their performance and not take unnecessary risks.