Applying UEFA Financial Fair Play Rules and Improving the Financial Stability of Football Clubs Illustrated by the Example of Manchester City FC

Abstract

This article considers the financial monitoring of football clubs under UEFA Financial Fair Play (FFP) regulations. The aim of the paper is to study the current system for assessing the financial stability of football clubs and propose measures for its practical application. The work is relevant due to a wide range of financial challenges in modern football and supported by a detailed analysis of a recent case of Manchester City football club accused of breaching FFP. Studying the main allegations against the club, the author analyzed the basic concepts of FFP, breaches of other clubs and sanctions imposed on them, with emphasis on the experience of Russian clubs. The analysis illustrated the role of UEFA and football clubs with regards to FFP implementation, considering a specific case. The author estimated the potential Losses of Manchester City due to the Champions League ban, and, in addition, the total losses due to the English Premier League suspension amid coronavirus threat. Using FFP criteria, the author analyzed the financial stability of Manchester City and Russian football club CSKA Moscow and identified similar problems for the clubs. The author outlined recommendations for UEFA rules compliance and presented a system of indicators that help to regularly monitor and manage the longterm financial stability of football clubs. The findings of the paper may find application in the field of other team sports.

Keywords

• sport economics
• sport finance
• football economics
• football finance
• assessment of potential losses
• the impact of coronavirus on the economy (sport)
• financial strategy of a football club