Financial Fair-Play rules in professional football are in line with EU state aid policy
In a joint statement of Vice President Joaquín Almunia and UEFA President Michel Platini, confirmed that, with a view of promoting fair competition between football clubs, the interaction between the application to professional football of Financial Fair Play (FFP) rules by UEFA are in line with the state aid control in professional football by the Commission. Mr Almunia also expressed his concern regarding the increasing level of indebtedness of many European clubs.
Vice President Joaquín Almunia and UEFA President Michel Platini issued a joint statement which provides a basis for further cooperation between the Commission and UEFA with a view to promoting fair competition between football clubs. In particular, the joint statement announces that the Commission and UEFA will cooperate and discuss issues such as the fiscal treatment of clubs and the treatment of clubs receiving rescue and restructuring aid from public authorities. When the Lisbon Treaty's entered into force, it had created the first legal basis for sports. Therefore there are initiatives concerning sports such the one presented by MEPs in February 2012 that proposes setting up a European register of agents in sport.
With regard to the current interaction between the application to professional football of Financial Fair Play (FFP) rules by UEFA and the control of State aid in professional football by the Commission, the joint statement confirms that Financial Fair-Play rules in professional football are in line with EU state aid policy. However, Mr Almunia stresses his deeply concern by the increasing level of indebtedness of many European clubs. According to him, the situation is not sustainable. Both EU state aid rules and UEFA objectives help introduce discipline and rationality in football club finances.
Football clubs experience financial difficulties when their finances are not soundly managed and, as a result, there is a particular risk that public authorities may be tempted to grant state aid. Such aid is in principle incompatible with the internal market and can only be authorised under strict conditions. Any aid must, furthermore, be notified to the Commission in advance. In fact, very few aid measures to professional football clubs have so far been notified to the Commission.