League champions accept Financial Fair Play sanctions
Manchester City made clear their anger with Uefa last night after being fined £49 million and restricted in the transfer market for breaches of Financial Fair Play (FFP) regulations.
After three weeks of tense discussions, in which the club contemplated taking legal action against Uefa, City reluctantly accepted the sanctions rather than risk further damage to their reputation by pursuing a claim against European football’s governing body. In a statement last night, City said that they had dropped a planned appeal because of the possible fallout from an escalation in their conflict with Uefa.
Under the terms of a settlement with Uefa, City face a £49 million fine, £32.5 million of which will be returned if they comply over the next two years, and have been told that they can register a maximum of 21 players, rather than 25, for next season’s Champions League. City have also agreed to a maximum net transfer spend of £49 million this summer and accepted a salary freeze on their Champions League squad, which will also include restrictions on how many new signings can be added to it.
The sanctions relate to City’s losses of £97.9 million in 2011-12 and £50.6 million in 2012-13, which far exceed the maximum permitted £37 million loss over that two-year period. City argued that substantial portions of their expenditure related to investments in infrastructure and youth development and that they should have been allowed to write off up to £80 million of wages earned by players signed before FFP regulations were introduced in 2010.
In a statement issued last night, City said: “The club can confirm that it has been in discussions with Uefa... in relation to the application of FFP regulations, as has been widely reported and communicated by Uefa. At the heart of those discussions is a fundamental disagreement between the club’s and Uefa’s respective interpretations of the FFP regulations on players purchased before 2010. The club believes it has complied with the FFP regulations on this and all other matters.
“In normal circumstances, the club would wish to pursue its case and present its position through every avenue of recourse. However, our decision to do so must be balanced against the practical realities for our fans, for our partners and in the interests of the commercial operations of the club.
“From the outset, the club has engaged with Uefa in its introduction of the FFP regulations in good faith and without prejudice and in a transparent and collaborative manner. The club’s position is that it is beholden upon Uefa and the European football establishment to ensure the same.”
Along with Paris Saint-Germain, whose commercial deals were also queried, City have received by far the heaviest sanctions of the nine clubs found guilty of breaching FFP regulations. City attempted to reassure their fans last night that the sanctions should have little effect on the club’s ambitions. The statement read: “The club’s expenditure on new players for the summer window, on top of income from players it might sell, will be limited to €60 million [about £49 million]. This will have no material impact on the club’s planned transfer activity.
“The Champions League squad for the 2014-15 competition will be limited to 21 players. In 2013-14 the club registered 23 players for the competition and used 21. The wage bill of the whole club (playing and non-playing staff) will need to remain at the same level as that of the 2013-14 season. It is important to note that additional bonuses for performances can be paid outside this number. Importantly, in reality, the existing business plan sees a natural decline in that wage bill.”
Despite the sanctions, City are expected to proceed with their bids to sign Eliaquim Mangala and Fernando, from Porto, and Bacary Sagna, on a free transfer from Arsenal.
