Why weren't Barca banned by UEFA when they had wage bill of 110%?

[roonster09]

One of the rules of UEFA FFP is, Clubs shouldn't spend more than 70% of their total revenue on wages, so going by reports, Barca had around 110% and even with Messi leaving, it takes their total wage bill to 85%

From UEFA FFP Rule

In addition, the UEFA Club Financial Control Body reserves the right to ask the licensee to prepare and submit additional information at any time, in particular if the annual financial statements reflect that: a) employee benefits expenses exceed 70% of total revenue; or b) net debt exceeds 100% of total revenue.

So Barca failed at least the wages part, why didn't UEFA take any action against them?

 

[elmo]

They're not kicking Messi out from the CL.

 

[Tarrou]

because money

 

[amolbhatia50k]

Is the rest of FFP being implemented properly? Were City and PSG compliant throughout.

 

[roonster09]

Is the rest of FFP being implemented properly? Were City and PSG compliant throughout.

No but they faced sanctions before when they broke the rule, like squad limit for both clubs and also they were fined.

City were also banned, which they got it overturned in CAS on technicality.

I didn't hear/read a single thing on Barca and FFP when they spent so much on wages.

 

[Hulksmash]

FFP was designed to stop smaller Teams catching up. That was the Intend and not stopping the historic club spending

 

[Skills]

Didn't FFP restrictions get paused because of covid? And I tbknk they apply as an average over the course of a few seasons

 

[roonster09]

Covid could be an excuse as revenues are down for most clubs.
However FFP rules are so nebulous, anyone with the right connections can sidestep them with impunity.
For example, PSG have a loss of Eur 200 million and can still sign 4-5 top players on such high wages. How is this possible?

Yeah but this is precovid. They had huge wage bill even before covid.

 

[amolbhatia50k]

No but they faced sanctions before when they broke the rule, like squad limit for both clubs and also they were fined.

City were also banned, which they got it overturned in CAS on technicality.

I didn't hear/read a single thing on Barca and FFP when they spent so much on wages.

Just shows what a sham FFP which is why I would expect feck all from UEFA. A bit of reporting and a small fine would really do nothing in Barcelona's case as well. Either implement it properly or be done with it

 

[AbusementPark]

same reason why they wont do anything to them for the super league plans, money, prestige and profile of the club.
Possibly some under the table payments as well. Absolute joke that they threatened to kick them out and then it was just an empty threat and allow them to continue.

Wage structure has gone mental and still no restrictions imposed, if UEFA really cared they would have told Barca they wouldnt be able to register any new players at all this season.

 

[Adisa]

FFP looks st accumulated finances over multiple years...think three.

 

[R'hllor]

Funny that.

 

[rcoobc]

Yeah but this is precovid. They had huge wage bill even before covid.

Source that shows they were operating at a loss pre-covid?

 

[giorno]

My understanding is their wage bill was 110% of their previous league salary cap. It never broke UEFA FFP rules

Their salary cap last season was €347M against a budgeted wage bill of €362M

 

[roonster09]

My understanding is their wage bill was 110% of their previous league salary cap. It never broke UEFA FFP rules

Their salary cap last season was €347M against a budgeted wage bill of €362M

Maybe, this makes sense than assuming they had close to billion wage bill.

 

[Regulus Arcturus Black]

Their wages with Messi were 110% of their 500 million reduced revenue due to Covid.

Kinda harsh to punish a club for not having the foresight to see a global pandemic coming with an unprecedented government response that cut their expected revenue literally in half innit?

 

[abundance]

One of the rules of UEFA FFP is, Clubs shouldn't spend more than 70% of their total revenue on wages, so going by reports, Barca had around 110% and even with Messi leaving, it takes their total wage bill to 85%

From UEFA FFP Rule



So Barca failed at least the wages part, why didn't UEFA take any action against them?

(loopholes, books cooking and corruption notwithstanding...)

I think this reported "110%" and "85%" is not wages to revenue, rather total annual cost of players to revenue - that is, wage bill + players transfer fees amortisations.
Which are the costs that are capped in these new La Liga requirements that Barca is struggling to meet.

Before pandemic, Barca wages bill was around 60-65% of revenue, complying with FPF. Amortizations were somewhere around 20%.
So total annual cost of players was in the 80-90% region.

After the pandemic hit on revenue, the ratio skyrocketed. If they've managed to bring it down to 85%, wages are probably under 70% again.

Even if it doesn't matter to UEFA right now as they've basically put on hold all FPF regulations until we're fully out of COVID, as no club would be able to stay within the limits in the current situation.
Which is the reason why any team with actual cash on hand can effectively spend as they please now, as PSG is doing.

 

[Schmeichel's Cartwheel]

UEFAlona

 

[Tom Cato]

FFP was designed to stop smaller Teams catching up. That was the Intend and not stopping the historic club spending

Yeah that is a lie and you should not go on the internet and lie.

Its meant to stop clubs like Leeds, Portsmouth, Rangers, Malaga CF etc of suffering bad owners that cripples the clubs with larger debts that it can sustain.

This story you're trying to lie about is simply a small scale problem that FFP is equal to everyone, and 70% of Barcelona is bigger than 70% of Bornemouth

 

[Tom Cato]

One of the rules of UEFA FFP is, Clubs shouldn't spend more than 70% of their total revenue on wages, so going by reports, Barca had around 110% and even with Messi leaving, it takes their total wage bill to 85%

From UEFA FFP Rule



So Barca failed at least the wages part, why didn't UEFA take any action against them?

There's some legal trickery involving what exactly counts as income towards FFP.

Joan Laporta has inherited one of footballs biggest piles of shit from Bartomeu. The mans incompetence far exceeds criminal negligence and mishandling of funds from a first glance.