Financial Fair Play in Sports

Financial Fair Play (FFP) is a set of rules used by sports organizations, such as UEFA, to ensure that football clubs manage their finances responsibly. The main goal is to prevent clubs from spending beyond their means, which can lead to financial instability or unfair competition. Clubs are required to balance their spending with their revenue from sources like ticket sales, sponsorships, and broadcasting. If a club consistently overspends, they may face penalties such as restrictions on signing new players or even disqualification from competitions. FFP aims to promote financial sustainability and fairness across the sport.