FIFA FFP & Club Licensing 4

Question 1

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

Accepted Answer

£105 million

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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?

Accepted Answer

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

Answer

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.

Question 4

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?

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

FIFA Football Agent Certification Practice Test

FIFA Football Agent Certification Practice Test

FIFA FFP & Club Licensing 4