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. 
Manchester United and Barcelona playing a Europa match at Old Trafford. Source: Getty 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.
Union of European Football Associations Logo. Source: Google 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.
The club which has been referred to an independent commission is said to have recorded losses of £371.8m ($388.3m) over the past three years. According to Premier League rules, clubs are allowed to lose a maximum of £105m ($128.3m) over that time. The Premier League executives were made aware of Everton’s situation following a joint letter written by Leeds chief executive, Angus Kinnear, and Burnley chairman, Alan Pace. At the time of their joint letter, both clubs were threatened with relegation and both also indicated their right to make legal claims against the Premier League and Everton. Confirming the charges, the Premier League said in a statement; “In accordance with Premier League Rule W.82.1, the Premier League confirms that it has today referred an alleged breach of the League’s Profitability and Sustainability Rules by Everton Football Club to a Commission under Premier League Rule W.3.4. The assessment period for which it is alleged that the Club is in breach is the period ending Season 2021/22. 
“The proceedings before the Commission will, in accordance with Premier League Rule W.82, be confidential and heard in private. Under Premier League Rule W.82.2, the Commission’s final award will be published on the Premier League’s website. The League will be making no further comment until that time.” Reacting to the development, Everton said they are disappointed with the decision, adding that they are “prepared to robustly defend” their position to the commission. The club said in a statement; “Everton Football Club is disappointed to hear of the Premier League’s decision to refer an allegation of a breach of Profit & Sustainability regulations to an independent commission for review. “The club strongly contests the allegation of non-compliance and together with its independent team of experts is entirely confident that it remains compliant with all financial rules and regulations. Everton is prepared to robustly defend its position to the commission. The club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times.”