Premier League: Liverpool to face Financial Fair Play investigation

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September 25th, 2014
Back Premier League: Liverpool to face Financial Fair Play investigation

Liverpool are one of several European clubs set to be investigated for possible Financial Fair Play (FFP) breaches. The UEFA rules state that all clubs competing in Europe must limit their financial losses to 35.4 million pounds over two seasons. When clubs don't comply there are punishments, Manchester City for instance have broken the rules and were handed a fine and also a limit on spending and squad size.

Liverpool recorded losses of £49.8m in 2012-13 and £41m in 2011-12, but they are confident they will be cleared following the investigation. Liverpool, Monaco, Inter Milan and Roma have submitted their accounts to the Club Financial Control Body (CFCB), but they will be asked to provide further information shortly. The Reds have signed a few profitable commercial deals in the last 18 months, so with that money they might fit into the FPP regulations. Also Liverpool can prove they have invested some of their spending in youth development, infrastructure and community projects.

Last season 76 clubs were deemed to be "at risk" of breaching FFP, but only nine were eventually punished. Manchester City and Paris St-Germain were the clubs that suffered the most severe hits by UEFA, each fined 49 million pounds and handed restrictions on transfer spending and a reduction in their squad size for the Champions League. If Liverpool will be going under investigation by UEFA, they would have their £6.8m prize money for reaching the group stages of the Champions League withheld until the club will be able to convince UEFA of their compliance.

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