UEFA impose salary cap and luxury tax instead of FFP?

There are reports UEFA will replace Financial Fair Play with a salary cap and luxury tax, limiting their wage bill to 70 per cent of revenue.

According to The Times newspaper, the plans will be presented next month and UEFA hope to make the changes official by next year.

FFP rules have been loosened since the COVID pandemic hit, allowing for more relaxed spending, but in turn some divisions such as La Liga have introduced their own limitations that hit clubs like Barcelona hard.

It’s reported the new cap will limit spending on salaries to circa 70 per cent of a club’s revenue.

If clubs breach that cap, then they have to pay a ‘luxury tax’ that is redistributed to the other clubs.

However, New York Times sports expert Tariq Panja has already warned that the tax will simply be factored in as a cost of business.

The role of Financial Fair Play has already been mocked with Manchester City spending over €100m on Jack Grealish and Paris Saint-Germain packing their squad with big-earning free agents like Gianluigi Donnarumma and Lionel Messi.