Juventus and Chelsea have come under the sledgehammer of UEFA for breaching UEFA Financial Fair Play Rules.
The two clubs have allegedly breached UEFA spending rules governing the conduct of activities of clubs on the transfer market in relation to their financial viability.
What is UEFA Financial Fair Play Rule?
UEFA Financial Fair Play Rules are regulations by UEFA to guide and control the activities of clubs in the transfer market.
The aim of UEFA Financial Fair Play Rules is to prevent clubs from outspending in the transfer market and plunging into debt. The rules ensures clubs don’t spend more than what they earn for a long-term financial sustainability goal.
Current UEFA financial regulations allow clubs to spend €5million more than they earn. However, the permission is not granted each year but over three years – a standard timeline which UEFA assess the financial viability of clubs.
Also, clubs are allowed to spend more outside their generated revenue if they are financed by their owners.
Breaching UEFA financial regulations attracts sanctions such as fine, and retrieving of prize money but the heaviest penalty is disqualification from UEFA competitions.
UEFA disqualify Juventus from UEFA Conference League
Juventus is the latest casualty of UEFA sanctions for breaching UEFA Financial Fair Play Rules. The European football governing body have handed the heaviest to the Serie A giants for financial dealings not complying to UEFA regulations.
Juventus have been hit with the sanction for alleged financial irregularities from 2012 to 2019.
The club have also been fined £17.14m but there is a waiver. They will only have to pay half of the fine if they will comply to UEFA Financial Fair Play Rules in the next three years when they will be assessed again but will pay full if they don’t comply.
UEFA sanctions on Juventus is not coming as a surprise. The club have been on the radar of local football authorities in Italy for alleged financial irregularities involving falsification of financial records and payments on players’ salaries.
However, UEFA Conference League spot was still up for grabs but following the latest sanction by UEFA, they will not be liable to play in the competition.
Club president, Gianlugi Ferrero, has confirmed the club will not appeal the decision and have accepted not take part in the competition.
Local Italian football authorities will now present a replacement with Fiorentina set to take the slot.
Chelsea also hit with UEFA sanctions
Chelsea have also been hit with UEFA sanctions for breaching UEFA Financial Fair Play Rules. They have been hit with a fine of £8.57million. Chelsea’s punishment is not due to Todd Boehly’s £600million splurge on 19 new players but financial dealings between 2012 to 2019 under Roman Abramovich’s watch.
Todd Boehly reportedly acknowledged the irregularities after taking over and had pledged to cooperate with UEFA hence they will not appeal the decision as well.