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29-Sep-2020 07:56

Although UEFA have made all efforts to help clubs get over the FFP Break Even line, and have been determined to avoid issuing harsh punishments, things could be different this time.

PSG failed the Break Even test in 2014, and, although the punishment is now ‘spent’, it is hard to see them taking such a lenient line with the club for such second, flagrant transgression that has made a mockery of the rules and so angered Barcelona.

For this reason (and owing to the Third Party ownership rules), I suspect the only way QTA could make this work would be to pay PSG around £70m a year as additional 'sponsorship'.

PSG would then buy Neymar on a 5 year deal from Barcelona.

So, assuming the term is 5 years, that would represent an expense of £40m in the accounts for each of the 5 years of the contract.

Interestingly, if the contract fee were paid direct by QTA and not put through PSG accounts, then presumably there would be no amortisation in the club accounts.

However, the numbers look too big to plausibly achieve.

It is interesting to ponder what sanction the club might receive when they fail the test.

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If the transaction took place entirely outside PSG accounts, the the purchase would not appear in the club accounts. UEFA have robust and comprehensive Related Party Transaction (RPT) rules to capture such a scenario.

I am particularly grateful to Mike Thornton (twitter: This season (2016/17), new ‘Profitability and Sustainability’ rules operate in the Championship; for the first time, clubs will be assessed over 3 seasons (rather than just a single season).

This change brings the Championship clubs into alignment with the Premier League – both have ‘Profit and Sustainability’ rules that are now fully aligned.

Nothing is off the table; the Football League are now able to impose a points deduction during the current season, or demote a club from an automatic promotion position into the play-offs (or out of the play-offs altogether).

Transfer embargoes are also available (with the earliest one potentially applying during the Summer 2017 Transfer window.Consequently, the £198m fee would be included as a single amount in the FFP test that takes place in 2018/19 season (when the RPT is identified by UEFA and included in the FFP calculations).