What do the FFP sanctions mean for Besiktas?

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Updated: May 8, 2015

Besiktas will be sanctioned up to a maximum amount of €5.500.000 over the course of the sporting seasons 2015/16, 2016/17, 2017/18 and 2018/19.

Of this €5.500.000, €1.500.000 will have to be paid regardless of future compliance to UEFA Financial Fairplay regulations. That means that the remaining €4.000.000 is optional, if Besiktas manage to comply to Financial Fairplay in the following two seasons they will not be fined further than the initial €1.500.000. Besiktas will need to have a deficit no greater than €20.000.000 on the end of the year report of 2016. That means that the difference between in and outgoing funds may not be greater than €20.000.000. The following financial year this may not be greater than €10.000.000. If Besiktas manage to comply to this, they will not need to pay more fines (that €4.000.000).

This fine will be deducted of any prize money the club earns in Europe over the course of the settlement. This means that Besiktas will not be paying UEFA any money, rather UEFA will withold the fine from Besiktas’ earnings in UEFA competitions. For example, qualifying for the UEFA Champions League group stages brings in roughly €20.000.000 in prize money for a Turkish club (depending if another Turkish club takes part or not), the €1.500.000 fine will then be deducted of that amount, so rather than earning €20.000.000 the club would only earn €18.500.000. Naturally this a very rough sketch of how it goes, in reality of that €20.000.000 a large portion exists out of TV rights which aren’t considered prize money. Prize money is how much the club earns for: qualifying, winning or drawing a match. But I hope that this scenario clarifies how this works.

To those of you who are unfamiliar with this financial speak, a break-even is quite simple: as a business or sports club in this case you have annual income but you also have expendatures, such as player and staff wages, transfer fees and so on. Basically Besiktas can not go more than €20.000.000 below zero in the fiscal year of 2016 and €10.000.000 in the fiscal year of 2017.

If Besiktas manages to comply to the breakeven requirements of these financial years than the restrictions in player registration will be lifted as of the 2017-2018 season. These restrictions are as follows: rather than being able to register the normal amount of 25 players for UEFA competitions, besiktas will be able to only register 22 players in the 2015-2016 season and 23 players in the 2016-2017 season.

There is also a sort of transfer restriciton, note that this is not a transfer ban. Besiktas will have a calculated amount of budget to be spent on new transfers and they may only register players to UEFA lists as long as the expenses of these players are within this budget. The declarations of UEFA nor Besiktas did not shed light on the amount of these budgets which is normal as they can impossibly go and calculate this for two years or even one year down the road as Besiktas’ projected income is expected to drastically increase once they finish their new stadium. So the revenue to expendatures ratio is constantly changing.

Besiktas also agreed to limit their staff and player wage expendatures relative to their income revenue. This basically means that the club is not allowed to spend more on player and staff wages than what they’re earning in revenue, wage budgets are only a certain percentage of the revenue, this can differ from club to club from 25% to 75% of the total budget so this is also something we don’t have specifics on.

In short, Besiktas will have €1.500.000 deducted of their future UEFA prize money earnings, this can ramp up to €5.500.000 if Besiktas do not manage to improve their financial situation and comply to the break-even regulations set before them by UEFA for the following seasons up to the 2018-2019 season. On top of that, Besiktas will only be able to register 22 rather than 25 players in the 2015-2016 UEFA competitions and 23 in the 2016-2017 season.

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Kaan Bayazit

Editor-in-chief at Beşiktaş International
Freelance sports writer specialized in Turkish football and Beşiktaş. Co-host of the Black Eagles podcast. Frequently featured in World Soccer Digest Japan and many other international media outlets. Following Turkish football for close to two decades. Proud father to Aedin.
Kaan Bayazit
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