Financial Fair Play rules explained as Man United told it will impact January transfer window plans

Financial Fair Play, or FFP as it’s more commonly referred to, is a term that is often mentioned during the two transfer windows of the year, with the regulations impacting how much clubs like Manchester United are able to spend.

Club chiefs have warned fans not to expect much excitement in January due to FFP after spending more than £180million in the summer. Several players could leave next month but the money is likely to be used to offset spending ahead of next summer.

Breaking finance rules has its consequences, and quite severely in the case of Everton’s 10-point penalty. They were found guilty of the Premier League’s own profit and sustainability rules, which slightly differ from UEFA’s FFP. MEN Sport explains all.

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UEFA brought the legislation into effect in 2009 after discovering half of Europe’s clubs were making losses with one-fifth of them in long-term difficulty. The idea behind its implementation was to ensure clubs do not put themselves in a position where they could fold.

By not allowing clubs to spend beyond their means, it secures not only the future of the club but people’s careers and livelihoods. Clubs are required to stick within a framework or else risk receiving a penalty.

In light of the Covid pandemic, clubs have been given more leeway when it comes to losses. UEFA’s deficit limit has now doubled to €60m across a three-year period while there is a spending cap of 70% of a club’s total revenue on player wages, transfer and agent fees.

The Premier League’s own version is similar to UEFA’s although it does have its differences. For example, post-Covid, clubs are allowed to