Day 29 – Financial fair play
Lesson
Topic Point: While not a global FIFA requirement, more continental associationsare adopting a Financial Fair Play or Financial Sustainability Regulations thatoversees club soccer. The objective is to balance spending with income so teamsdo not take on too much debt and go into financial jeopardy.
UEFA, for example, requires annualfinancial reporting to review expenses and revenue. While reporting is doneannually, the assessment is a 3-year rolling period where a club should breakeven at minimum. The rules of what is calculated in income and expenses are complicated,as are the consequences for not maintaining financial sustainability.Considering what has been discussed thus far (offsides, game clock, referee useof the whistle, substitutions, bookings, among other topics), there is a uniquecombination of subjectivity, flexibility, laxity, regulation, and oversightthat is on brand for the sport!
Ted Lasso: InS2E3, Higgins explains the club’s financial situation to Nora (Rebecca’sgod-daughter). She quickly ascertains that there is a discrepancy in theirincome due to their status as a 2nd tier club in the Championship vsthe players’ contracts that were issued as a Premier League team.
Later in season 2, Edwin Okufo wishes topurchase a player, Sam Obisanya. Though not discussed in terms of FinancialSustainability, that situation was an opportunity for Rebecca to earn incomefor the club (transfer fee) while simultaneously decreasing expense(eliminating Sam’s salary).
Finally, in season 3, Higgins proposes toRebecca that she may consider selling a minority share of the club to bring inrevenue to invest back into the club. Updating the stadium would be a regularsource of increased revenue after the initial expense. While the value of theclub is increased due to AFC Richmond’s league success, entry into the UEFAChampions League is a huge windfall. The club will play more games in aheightened exposure (continental) with exclusive television rights, resultingin additional revenue for the club (as noted by Roy, Beard, Trent, and Ted whendiscussing the apparent discordance amongst the nomenclature and entry into thevarious competitions – MONEY!).
Soccer-related note: UEFA introduced Financial Fair Play in 2010. CONMEBOL, the SouthAmerican federation, is implementing Financial Fair Play this year (2026).CONCACAF (North and central America) does not have a system in place. MajorLeague Soccer uses the traditional American system – a salary cap – along withother regulations. Liga MX (the Mexican top tier) does not have any financialregulation. In Asia, Financial Sustainability Regulations are implementedcountry by country. Australia utilizes a salary cap and maximum/minimumindividual player salary, however Oceania will be implementing a UEFA-styleregulation.
UEFA Champions League and the second/thirdlevel continental cups (UEFA Europa League and UEFA Conference League -SeeAppendix 5), have a television deal with Paramount Plus/CBS for broadcast inthe United States.
American Sports comparison: Most Americans that pay some attention to their local professionalsports teams are aware of league salary caps and some of the rules regardingrookie contracts and free agency. It is a source of fan distress to lose anall-star caliber player due to their financial value and salary caprestrictions!
Included in team revenue are the mediarevenue deals that leagues negotiate with our various media companies in theUnited States. While offering greater exposure and income for teams, it seemsto complicate the fans’ experience for viewing games.
Interactive
Financial Fair Play, like most things in world or association football, is a cryptic process. It is evaluated over a rolling 3-year period and the nuances of the balance sheet are subtle to enigmatic. Most recently, Arsenal has been scrutinized for their spending. Considering how they came up short of the EPL title over the last several of years (finishing in second place 3 consecutive years), its understandable that they would push the envelope to claim that title (which they did this year).
In February 2026, an article was published that stated Arsenal reports they were compliant with FFP. Of course, one would expect Arsenal to say that. However, Arsenal does project an EPL record of £770 million of revenue this season.
https://www.football.london/arsenal-fc/news/arsenal-ffp-truth-265m-confirmation-33493938
https://footballblog.co.uk/arsenal-record-revenue-psr-ffp-pressure/
Then in March 2026, an article was published noting that Arsenal may have to sell a star player to raise revenue to remain compliant.
https://sports.yahoo.com/articles/arsenal-could-sacrifice-key-star-124000920.html
Below is a link to an overall summary of the various UEFA confederations.
https://en.wikipedia.org/wiki/UEFA_Financial_Fair_Play_Regulations
Contrast Arsenal’s £770 million in revenue to Ipswich Town F.C. They were promoted to the EPL for 2024-25 only to be relegated to the Championship after one season. This year, they will be promoted again to the EPL for 2026-27. Their revenue for 2024-25 was a club record: £155 million. This discrepancy is making it difficult for newly promoted clubs to sustain their success in the top tier. Ipswich Town’s chairman is calling for an update to the FFP system to give rising club’s more leeway to upgrade their rosters.
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