FFP & Club Licensing Flashcards

Under the English Premier League's Profitability and Sustainability Rules (PSR), what is the maximum allowable loss over a three-year rolling assessment period?

Answer: £105 million

Premier League PSR allows clubs to lose up to £105 million over three seasons (£35 million per season), above which sanctions apply.

Which type of income is excluded from a club's 'relevant income' when calculating UEFA's break-even result?

Answer: Non-football income such as hotel operations unrelated to the club's football activity

Only football-related revenue counts as relevant income; purely non-football commercial operations unrelated to the club's football activity are excluded.

A club records a large player transfer profit that improves its break-even result. How does UEFA treat player sales in the break-even calculation?

Answer: Transfer profits are included as relevant income, improving the break-even position

Net transfer gains (profit on disposal minus book value) count as relevant income and directly improve a club's break-even result under UEFA FFP.

Under FIFA's Football Agent Regulations, how is the 'service fee' for an agent who represents a club (not the player) in a transfer transaction calculated?

Answer: Up to 3% of the transfer compensation paid by the buying club

When an agent represents the buying club in a transfer, the service fee is capped at 3% of the total transfer compensation paid.

What is 'amortization' in the context of club financial reporting and FFP?

Answer: The annual cost recognized for a player's transfer fee spread over the contract length

Transfer fee amortization spreads the purchase cost of a player over the contract duration, and this annual charge counts as a relevant expense in the break-even calculation.

Which sanction is specifically available to UEFA under its Financial Sustainability Regulations but was NOT part of the original FFP sanction toolkit?

Answer: Automatic squad registration limits tied to the squad cost ratio overage

The new regulations introduce automatic squad cost ratio-linked squad restrictions, a more mechanical enforcement mechanism than the old discretionary sanctions.

In club licensing terminology, what is a 'licence' as distinct from a 'registration'?

Answer: A licence is the annual authorization permitting a club to enter UEFA competitions

A UEFA club licence is the specific annual authorization granted by the national licensor that entitles a club to participate in UEFA competitions.