UEFA are set to scrap the financial fair play rules and replace it with a salary cap and luxury tax next year.
According to the Times, UEFA will reveal their proposals next month.
The financial fair play has been in effect for over a decade now, but it has been an abject failure so far.
The measures were introduced to curb the reckless spending of football clubs, but UEFA have not been able to stop the likes of Chelsea, Manchester City or Paris Saint Germain from breaching those limits.
These clubs have been spending beyond their income for years, and they have managed to get away from FFP sanctions because of their legal muscle and the loopholes in UEFA’s regulations.
Recently, Manchester City were banned from the Champions League after breaching the FFP regulations. Still, they won a legal battle with UEFA in the court of arbitration for sport, and their ban was overturned.
Therefore, UEFA are looking to introduce a new set of regulations that will bring a salary cap for the clubs, and anyone breaching those limits will have to pay a luxury tax.
Apparently, the luxury tax acquired from the offenders will be redistributed to the other clubs in the European competitions.
These plans are set to be discussed at a conference in September, and it remains to be seen whether they are approved. The conference will involve figures from national associations, leagues, clubs, players and agents.
