There seems to be a lot of confusion from fans on what the FFPRs actually mean for clubs? So i'm going to attempt to explain it for you all. Most of the examples i'll use in this post are based around English Premier League teams just for the fact that the reference i'm using to write this uses them as examples but it applies to all the big teams across Europe.
Why is the FFP being brought into effect?
It has long been a major concern for UEFA that clubs are continually making losses year in, year out and are not playing by the rules of fair play, by the owners subsidising their clubs by injecting large amounts of cash that the clubs can't make on their own merits. As a clubs largest expenditure is transfer and wage fees the FFP is being implimented to effectively put a cap on these expenses in order to bring more stability to the finances of the clubs because when all is said and done a football club is a business and every business needs to balance it's books, i.e not spend more than they earn.
Why is the FFP being brought into effect?
It has long been a major concern for UEFA that clubs are continually making losses year in, year out and are not playing by the rules of fair play, by the owners subsidising their clubs by injecting large amounts of cash that the clubs can't make on their own merits. As a clubs largest expenditure is transfer and wage fees the FFP is being implimented to effectively put a cap on these expenses in order to bring more stability to the finances of the clubs because when all is said and done a football club is a business and every business needs to balance it's books, i.e not spend more than they earn.
