UEFA Lists Out Punishments Slammed on Wolves for breaching financial break-even requirements

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European football governing body UEFA has slammed numerous punishments on Wolverhampton Wanderers (Wolves) for breaching the football body’s financial break-even requirements in the 2019-2020 season.

Some of the punishment includes, featuring only 23 players instead of 25 if the club qualifies for any European competition for 2020-2021 season, and forfeiting €0.6 million of any revenue the club generates from participating in European competitions.

Another punishment UEFA slammed on Wolves is that the club’s employee benefits expenses would be restricted until the club is able to fully comply with the football body’s financial break-even requirements.

However, the punishment which would last until the end of 2021-2022 season could be lifted before then if the Premier League club is able to fully comply with the financial measures set out by UEFA’s financial investigatory chamber.

UEFA financial break-even requirements are guidelines the football governing body put in place to prevent clubs from spending beyond their revenue.

A statement from UEFA says: “Wolverhampton Wanderers FC agrees that, for the financial year ending in 2020, its employee benefits expenses are restricted.

Wolverhampton Wanderers FC agrees to pay a total financial contribution up to €0.6 million, which will be withheld from any revenues it earns from participating in UEFA competitions.

“Of this amount, €0.2 million shall be paid in full while the remaining balance of €0.4 million is conditional depending on the club’s compliance with the break-even target stated in the settlement agreement.

Wolverhampton Wanderers FC accepts that, for the season 2020/21, it may only include a maximum of 23 players in its List A for the participation in UEFA competitions, instead of the maximum of 25 players as foreseen in the relevant competition regulations.

“Such restriction will continue to apply for the season 2021/22 unless the club fulfills all financial measures agreed with the CFCB Investigatory Chamber.”

The offense of Wolves

Wolves
Wolves

According to the statement issued by UEFA, Wolverhampton Wanderers breached UEFA financial break-even requirements in the 2019-2020 season when the club reported a deficit of €30 million for the financial year ending 2020.

Hence, UEFA expects that the Premier League club would reach an “acceptable break-even result by 2021”. If the club is not able to reach an acceptable break-even before then, the restriction on the club will be extended to 2022.

The restriction on Wolves can only take effect if the club qualifies for a European competition prior to the 2020-2021 season. The only channel through which the club can achieve European football in the forthcoming season is to win the 2019-2020 Europa League.

The Premier League club has already qualified for the Europa League after knocking out Olympiakos 2-1 on aggregate. The club will face Sevilla in the quarter-final of the competition.