Celtic: Brendan Rodgers frustrated with FFP limitations and no updates on new signings

CELTIC chief executive Michael Nicholson has revealed the club played a “significant role”

in the development of UEFA’s Financial Sustainability Regulations.

The present Financial Fair Play system will be replaced by the new rules,

which the football governing body has started to phase in.

The next four years will see the gradual implementation of the new regulations,

which will center around “three distinct pillars”.

The football earnings rule, the squad cost rule, and the no overdue payables rule are the three pillars that clubs participating in UEFA competitions must adhere to.

First, clubs must clear all outstanding fees owed to UEFA, social/tax authorities, employees,

and clubs by July 15, October 15, and January 15 in order to maintain the competition’s integrity and creditors. Fees are due on June 30, September 30, and December 31.

“An evolution of the existing break-even requirements” is how UEFA describes the football earnings regulation.

According to the guidelines, “the calculation of football earnings is similar to the calculation of the break-even result to ease the implementation for clubs.”

Modifications to the allowable deviation formula promote contributions from equity rather than debt.

The rules have been reinforced to oblige clubs to use their existing equity or donations to cover the costs of any required investments (youth development, infrastructure, etc.).

“From €30 million to €60 million over three years, the allowable deviation has grown.

For clubs exhibiting sound financial standing,

the allowable deviation may be raised above €60 million by a maximum of €10 million for each reporting quarter throughout the monitoring term.”

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