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May 20, 2014

Source: FFP court challenge rejected

FC's Gab Marcotti explains how the FFP rule was broken by PSG and Manchester City and how it will affect them.

The European Commission on Tuesday signalled that it intends to throw out a challenge put forth to the new Financial Fair Play system in European courts, a source told ESPN FC.

The FFP rules, introduced at start of 2012-2013 season require clubs who play in the Champions League and Europa League to balance their finances, and are meant to curb huge investments by owners and excessive spending on transfers. •Marcotti: What FFP ruling means

An Italian football agent last year challenged the FFP system, saying that it breached European Union competition laws in giving UEFA sweeping powers, including exclusion from Champions League.

Daniel Striani's complaint challenged UEFA's break-even rule, saying it will inhibit competition -- a key principle of European Law -- and will reduce the number of transfers. Striani said the break-even rule could potentially mean a decrease in players' salaries, followed by less in agents' fees.

In rejecting the legal challenge, one of two that Striani has put forth in European courts, the source told ESPN FC that the FFP break-even requirement is not aimed at agents and imposes no obligations on them.

Last week, UEFA announced that Manchester City and Paris Saint Germain both agreed to pay 60 million euros and reduce their squads for the Champions League next season as part of their punishment for violating Financial Fair Play rules.

Manchester City chairman Khaldoon Al Mubarak was critical of how UEFA calculated FFP, but said on Tuesday that his club will break even this year and will make a profit the next year.

"Financial fair play has a particular model in mind and preserves other models that I disagree with and the model we have started on six years ago," he said. "I think then history will judge what was right for football. I have all the confidence in the world where we are going to be in six years."

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