UEFA request additional FFP related information

Updated: September 25, 2014

European football’s governing body, UEFA, have officially requested Beşiktaş to provide them with additional information regarding a break-even deficit int he financial reports of 2012 and 2013.

“The CFCB has opened formal investigations into seven clubs (AS Monaco FC, AS Roma, Beşiktaş JK, FC Internazionale Milano, FC Krasnodar, Liverpool FC and Sporting Clube de Portugal) as they disclosed a break-even deficit on the basis of their financial reporting periods ending in 2012 and 2013. These clubs will need to submit additional monitoring information during October and November upon the deadlines set by the CFCB, subsequent to which an additional communication will be made and conservatory measures may be imposed.”

What exactly does this mean?

It basically means that Beşiktaş (and the other mentioned clubs) showed a negative difference in income and expendatures in either one, or both, of the above mentioned years (2012 or 2013).

Permitted level of loss

UEFA appreciate that it would be unfair to fail clubs who make a small loss; consequently they have introduced a concept called the ‘permitted Break-Even deficit’. As a result, clubs can make a loss up to a certain level but if they go over the permitted thresholds, they will fail the FFP Break Even test. UEFA understand that because players are often on long contracts and clubs cannot reduce their spending quickly. For this reason the permitted Break Even deficit is set at a fairly high level (€45m) for the first Monitoring Period, and is then reduced in future Periods. The permitted loss falls to €30m for the three year period that covers 2013/14, 2014/15, 2015/16 (that works out to an average loss of €10m or £8m a season).

For the time being all what UEFA is asking is some additional information from the club, this could potentially result in some sort of Financial Fairplay restrictuions in the future. However, bare in mind that the FFP punishment which Beşiktaş received in the 2012-2013 season (Beşiktaş weren’t allowed to compete in UEFA’s Europa League competition) was for taks evasion. Break-even deficits get punished by wage restrictions (not growing you total wage budget over the course of one or more years) and/or a financial fine (usually this is a small fine (for example €200.000) unless in certain exceptional cases (like Paris-St.-Germain and Manchester City who had to pay € 60.000.000 due to their extravagant spending) but that doesn’t apply to Beşiktaş, we can safely say that simply by looking in to the annual reports.

But we’ll have more information on this as it comes in. For the time being, I would say there’s not t hat much to worry about. The club has been very cautious and responsible about any form of expendatures and have sealed several big sponsorship contracts in the past 24 months.

Additional information

Kaan Bayazit | Beşiktaş International

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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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