Kieran Maguire reveals how £50m Uefa development is set to impact Arsenal
New Uefa spending controls will give Arsenal a short-term boost but will ultimately leave them in the same position as the FFP system.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the abolition of the financial fair play model.
Per the New York Times on Tuesday (22 March), Uefa is set to scrap the decade-old limit on financial losses in favour of a revenue-based system.
Clubs in Uefa competition will no longer be able to spend over 70 per cent of their turnover on wages and transfers over a rolling three-year period.
But the maximum permitted loss has also been doubled to £50m under the new system.
Arsenal were in the red by £107.3m in their last set of accounts alone, although a large portion of that will fall under the Covid add-back scheme.
Maguire explained how the new profit and sustainability model will have pros and cons for the Gunners.
“I think in the short-term in a post-Covid environment, it will help the likes of Arsenal,” he told Football Insider‘s Adam Williams.
“But as the limits are being increased, the deductibles in the shape of women’s football, community schemes, and academy schemes are being taken away.
“Uefa is giving with one hand and taking away with the other. So, I don’t think there will be a huge amount of change in terms of winners and losers.
“Those who have significant headroom with FFP will continue to have significant headroom.
“Conversely, those who were sailing close to the limit will be in the same situation also.”
Premier League clubs not competing in Uefa competitions have their own FFP rules, which permit losses of no more than £105m over three years.
Arsenal’s turnover for 2020-21 was £487m, meaning they could spend £341m on wages and transfers under the new Uefa system.
In other news, pundit suggests Arsenal to “fight tooth and nail” for Bukayo Saka deal as talks reported.