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How Will UEFA's New Spending Regulations Affect Manchester City?

Another attempt to limit spending on clubs.

Liverpool FC v FC Internazionale: Round Of Sixteen Leg Two - UEFA Champions League Photo by Joe Prior/Visionhaus via Getty Images

Following the effect of the pandemic on European football, the continent’s football governing body, UEFA, has rolled out a new set of rules to regulate spending. This has been done in conjunction with the European Clubs Association (ECA) with the sole aim of making European football more sustainable.

The new spending rules are expected to replace the existing Financial Fair Play (FFP) regulations.

Based on the prevailing regulations, clubs could spend over £4.1 million more than their income in a three-year assessment time frame. But supported by their owners, they can spend up to £24.9 million.

The new rules stipulate that clubs can only spend 70 per cent of their revenue in a calendar year on wages, transfers and agents’ fees. But this 70% cap will come into effect by 2025.

This is intended to give clubs enough time to adapt to these rules. Hence the process of implementing the new rules will be gradual and over a period of time. As a result, clubs will be permitted to spend 90% of their income in 2023 and then reduce the expenditure further by 10% in 2024.

By 2025, they are then expected to comply with the 70% rule.

Speaking on the new changes, UEFA president Aleksander Ceferin said: “UEFA’s first financial regulations, introduced in 2010, served its primary purpose. They helped pull European football finances back from the brink and revolutionised how European football clubs are run.

“However, the evolution of the football industry, alongside the inevitable financial effects of the pandemic, has shown the need for wholesale reform and new financial sustainability regulations. UEFA has worked together with its stakeholders across European football to develop these new measures to help the clubs to address these new challenges.

“These regulations will help us protect the game and prepare it for any potential future shock while encouraging rational investments and building a more sustainable future for the game.”

Changes to the current rules have been long overdue as they were seen by some as set to favour the more traditional clubs. Manchester City has come under investigation by regulatory bodies and by the court of public opinion on several occasions as a result of Financial Fair Play rules.

But regardless of the limitations brought about by the rules and attempts to smear the club by consistently casting it in a negative light, the club has continued to make progress.

Having superstar teams both in the boardroom and on the pitch has put the club on a solid path of growth. So much so that the club excelled even in the pandemic.

With a new set of rules that allow for even more freedom to grow, it can only get better for City.