UEFA set to overhaul Financial Fair Play rules later this year with a luxury tax and salary cap being considered

Source: Sky Sports

In 2020, UEFA gave greater financial powers to club owners due to the fragile economic circumstances caused by Covid-19; Romelu Lukaku has become the most expensive player in terms of combined transfer fees with £97.5m return to Chelsea while Lionel Messi's PSG deal is worth £25m-a-year

UEFA is pressing ahead with plans to overhaul its controversial Financial Fair Play rules by the end of the year.

The rules were introduced in 2009 to encourage clubs to break even and spend what they could afford, but many in the game now think they are ineffective, unenforceable, and not fit for purpose.

As a result of the financial crisis in football caused by the pandemic, UEFA announced earlier this year it would review its FFP rules to see if a more effective system of checks and balances could be introduced to monitor and control spending.

UEFA wants the new rules to focus on the high levels of spending on wages and transfers and it is considering introducing a salary cap and a luxury tax on transfers.

UEFA estimates European clubs have missed out on £7.5bn of revenue because of the coronavirus pandemic.

Before Euro 2020 started this summer, European football's governing body's president Aleksander Ceferin insisted football across the continent needed new rules for a new future to achieve financial sustainability.

Speaking at the 45th UEFA Congress, following the European Super League debacle, Ceferin said: "I have read…that we are planning to abolish financial fair play.

"Let me be clear: that is not going to happen. However, we do need to adapt it to the new reality. We need to encourage and release investments.

"We need to correct some of the injustices that Financial Fair Play may indirectly bring about in the current circumstances."

Prior to the pandemic, clubs were limited by UEFA to losing £26m over a rolling three-year period.

In June last year, the organisation introduced emergency measures which allowed owners to put more money into clubs during the pandemic.

Until the new rules are introduced clubs will not be punished for breaking FFP rules if they can prove the losses were caused by the pandemic.

Many powerful voices at UEFA now believe spending on wages and transfer fees has spiralled out of control.

UEFA's recommendations for what to do about it will be delivered before the end of the year.