28 May 2010
European football's governing body, UEFA, has approved new regulations which will restrict the amount of money clubs can spend. The Financial Fair Play Test is designed to prevent clubs going into debt.
Click to hear the report:
UEFA's ruling committee gave the new financial regulations its unanimous approval. After a phasing in period they'll come into force at the beginning of the 2012 season.
UEFA is determined to limit the lavish spending which has become such a feature of the game. A recent report found that half of Europe's leading clubs were losing money, and 20 per cent faced huge deficits.
Under the new rules they will have to break even. Clubs will not be allowed to spend more money than they generate. Rich benefactors will no longer be allowed to subsidise expensive transfers and salaries. Those clubs which consistently operate outside the parameters will be barred from European competitions.
Individual national associations will be mainly responsible for making sure clubs follow the new policy.
Alex Capstick, BBC News
Click to hear the vocabulary:
- unanimous approval
all the members of a group (here, UEFA) agree to a course of action
- a phasing in period
a period of time when clubs can get ready to follow the rules (though in this time they can choose to follow the rules or not)
- lavish spending
paying a lot of money
- faced huge deficits
lost a huge amount of money
- break even
for a business to have neither a profit or a loss at the end of a business period
people who give money to help an organization, society or person
- to subsidise
to pay part of the cost of something
buying and selling of football players
- consistently operate outside the parameters
repeatedly do not obey the rules
- will be barred from
won't be allowed to compete or play football in