The financial ‘Fair Play’, insufficient against the new Newcastle

The purchase of Newcastle United puts UEFA in check that he will have to move card during the next weeks to vary the rules of the Financial Fair Play, which now seems insufficient to face the power of phenomena such as Newcastle or the already known Manchester City or PSG ..

Following the purchase, Newcastle have become the richest club in the world. At least, it has the owners with more equity, since the new fund has eleven times more capital than Sheikh Mansour, the owner of Manchester City.

The intention of the UEFA President Aleksander Ceferin, is to adopt new measures with a salary cap and a luxury tax for clubs that do not comply with the Financial Fair Play. According to the planned system, the clubs participating in the competitions

Europeans would simply spend a fixed percentage of their income, possibly around 70% on salaries.

Any club that exceeds that limit by twenty percent would have to pay a luxury tax, an amount that would revert to the body’s coffers and then be redistributed to clubs from other European competitions.

Toni Roca, expert in sports law and director of Sports Law Institute, has explained the consequences that this measure would entail for clubs: “The new reform proposed by UEFA is a step further to benefit club-states, including Paris Saint Germain or Manchester City and now Newcastle, who will be able to face the luxury tax with money from Qatar or the states that are behind these large entities. By the Real Madrid or Barcelona, ​​the stage would be viewed in a very different way, since both clubs would be the most affected in all of Europe. «He explains that» since they are not joint-stock companies, where capital cannot be injected by investors, both clubs would have a serious problem when dealing with this possible luxury tax, as they could only pay it if they are able to generate income for themselves. «

To try to smooth the gap between the big Spanish clubs (Barça and Real Madrid) and some Europeans (Newscatle, City or PSG), Roca is committed to «approving a new tax regime and to make LaLiga’s financial control more flexible, because as long as it continues to be stricter than UEFA’s, the situation of Spanish clubs will be worse and worse compared to those in our environment. We have the example with the French league, that it agreed to suspend its economic control rules for a few years, and that is what has allowed the arrival of so much crack. «The case of Leo Messi to PSG it is the most paradigmatic.