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31st May 2023

UEFA planning radical change to cap transfer spend and wages

Callum Boyle


Some of the biggest clubs in Europe could be affected by this

UEFA are planning to introduce new financial regulations that would see the governing body introduce a cap on amount spent on transfers and wages.

The Times reported they want to introduce the cap which could have huge implications on Premier League clubs as they try to ensure their competitions remain as competitive as possible.

It comes after concerns that clubs in England may become even more financially dominant under UEFA’s new Financial Sustainability Regulations (FSR).

As of this year, FSR will only allow sides to spend to a certain percentage of their annual revenue.

Those competing in European competitions will 90 per cent of revenues on wages and transfers in 2023 before dropping to 80 per cent in 2024 and then 70 per cent in 2025.

Some of Europe’s biggest clubs have reportedly argued that FSR will enable English clubs to become even more dominant in the transfer market. 16 of the 30 richest clubs in the continent compete in the Premier League.

So far no level for the cap has been discussed and is currently being assessed by a working group for European football which contains representatives from UEFA, the European Club Association (ECA), the European Leagues and players’ union Fifpro.

Aleksander Ceferin, president of UEFA, told Men In Blazers last month: “It’s not about the owners, it’s about the value of the competition, because if five clubs will always win then it doesn’t make sense any more.”

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