UEFA fines Barcelona and Manchester United for FFP breaches
UEFA has confirmed that both FC Barcelona and Manchester United have been fined for violating the Financial Fair Play (FFP) regulations.
In a statement late on Friday, July 14, it was disclosed that United were handed a €300,000 ($336,420) fine for “minor break even deficits” for the financial years spanning between 2019 and 2022.
Barca, meanwhile, were issued a larger €500,000 ($560,700) fine “for wrongly reporting, in the financial year 2022, profits on disposal of intangible assets (other than player transfers) which are not a relevant income under the regulations.”
The former European champions each earned tens of millions of euros (dollars) in UEFA prize money last season. Barcelona played in the Champions League group stage, but lost in the Europa League knockout playoffs to United, who were eliminated at the quarterfinal stage by eventual winner Sevilla.
A group of storied clubs including AC Milan, Inter Milan, and Paris Saint-Germain who were fined by UEFA last September, all met their stricter financial targets for last season. They will continue to be monitored for compliance over the next year.
The FFP rules which Manchester United and Barcelona breached, were introduced by UEFA in 2009 to prevent football clubs from spending more than they earn in pursuit of success and risking their long-term financial health.
UEFA has updated the FFP rules that were approved in 2009 with a new monitoring system. It prioritises financial sustainability for clubs and moved away from setting competitive balance on the field as an achievable target.
Recent reports from the Telegraph on Wednesday, July 12, shed light on Real Madrid facing scrutiny regarding irregular financial activities evident in their published financial results.
In the latest financial report, an approximate sum of €135 million was allocated to a specific category called “other operating expenses,” with €122 million remaining unexplained.
Real Madrid declined to provide details about a deal signed in the 2017-18 fiscal year with the private equity group named “Providence.” The deal involved the club receiving funds in exchange for the sale of future income streams, and it has since been extended and increased in value.
However, the income generated from the undisclosed portion of future sponsorships, which was renewed in 2019-20, was recorded as revenue rather than debt in Real Madrid’s financial records.
