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City And PSG Within Financial Fair Play?

Manchester City and Paris Saint-Germain will soon learn their Financial Fair Play (FFP) fate as UEFA are currently investigating 76 clubs.

The Club Financial Control Body’s (CFCB) investigatory chamber is meeting this week to consider whether the clubs have complied with FFP rules.

City and PSG are considered to have committed serious breaches of UEFA’s break-even rules and will hear the results around May 5.

While the English side have lost £149m (R2.6 billion) in the past two season, PSG have reportedly wiped out its annual losses of €130m (R1.9 billion) by announcing a back-dated sponsorship deal, which the Qatari-owned club signed with Qatar Tourism Authority.

It’s a deal with a related party and the French club will have to convince UEFA this procedure is fair market value.

"Our contract with Qatar Tourism Authority is not some accounting trick. It's the same contract we have with Emirates," said PSG president, Nasser Al-Khelaifi.

"There's no reason for UEFA to disagree. Everything is legal. Our lawyers are very competent."

Clubs can lose up to €45m (R 645 million) over the last two years under UEFA's rules.

City made losses of £149m (R2.6 billion) over the past two years, but can write off sums spent on facilities, youth development and a number of other items.

Meanwhile, other top English clubs have little to fear, with the likes of Arsenal and Manchester United being in the black in both years. Chelsea made a £49.4m (R 791 million) loss last year but made a £1.4m (R 25 million) profit in 2012 so will comply.

Liverpool and other clubs such as Monaco, who are not playing in Europe this season, will not have to pass the FFP rules until next autumn, with any sanctions applicable in 2015.

Do you think the Financial Fair Play rules are working? Have your say in the comment section below.

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