The man who changed football forever says UEFA’s Financial Fair Play system is illegal. Instead, he tells Richard Edwards, if teams like Chelsea and Monaco want to overspend, make them put the money up front – and charge them a 10% luxury tax…
“We’re challenging one rule, which is the break-even rule,” he says. “This says that the owner of the club can’t overspend even if it is with his own money. This is not in line with EU law.”
The ‘break-even’ rule is perhaps the most fundamental element of FFP, but in the complaint filed with the European Commission in May 2013, Dupont outlines the impact it could have on almost every part of the game.
“The break-even rule prevents football clubs from freely determining their level of expenses, since it imposes a ceiling on their deficit, a limit to their investment, even if such deficit/investment is entirely covered by the owners. In particular, the clubs are limited in their freedom to hire players, since the break-even rule confines the amount of transfer fee and salaries clubs can offer.”
Above are just a few snippets of the overall argument Jean-Louis Dupont is making in order to change the rules of Financial Fair Play. I highly suggest you click the article sourced below to read the argument in its entirety. Essentially what Dupont is saying is the FFP rules are illegal because it doesn’t allow football owners to do what owners of other entities within the EU economy are capable of doing. Clubs owners should be allowed to invest their own money on new players and infrastructure as long as the club isn’t shouldering the burden. If the club owners are shouldering the debt then it should not affect the clubs standing because the club owners are choosing to invest their own hard-earned money. Deadspin explained the problem with the current FFP rules very eloquently by illustrating how the current rules don’t protect the small clubs. Instead, the current FFP rules maintain the status quo by entrenching the big clubs and preventing smaller clubs from using their owner’s resources to challenge the bigger clubs. From the sounds of Dupont and many other financial analysts argument FFP is highly flawed and although it was created to even the playing field it is not achieving the desired effect. It will be interesting to see how this plays out because FFP only recently came to prominence and if it is flawed then it would be for the good of the game if it is repealed and fixed to better achieve its original goals.