According to Times’ Martin Ziegler, Barcelona is facing potentially serious sanctions from UEFA after violating financial regulations in Europe’s football for the second year in a row. This repeated violation will put Catalan clubs at risk of more serious disciplinary actions than previously imposed, including unprecedented options such as points deductions at the UEFA competition and reduced Champions League next season.
Meanwhile, Chelsea and Aston Villa are set to face sanctions after committing their first violation of UEFA financial rules, but their penalties are expected to be limited to financial fines. UEFA’s Club Financial Control Committee (CFCB), the agency responsible for implementing Financial Sustainability Regulation (FSR), is expected to release the results of these cases later this month.
Barcelona’s repeated crimes and risks of severe sanctions
Barcelona’s financial regulations issue is nothing new. In October 2023, the club lost its appeal at the Court of Arbitration of Sport (CAS) on a UEFA fine of 500,000 euros (420,000 pounds). The fine was collected after it was discovered that the club was misreported to its accounts in an attempt to comply with UEFA’s financial limits. Cas supported Uefa’s punishment, but also issued a harsh warning that further violations would lead to “thankful” penalties.
This latest development confirms that Barcelona’s financial practices have crossed the UEFA threshold again due to acceptable losses, causing recidivism under UEFA regulations. According to the CAS ruling, if a club has violated financial regulations in previous years, the recurrence requires more severe consequences. The point deduction in European competition will be unprecedented, but UEFA will instead allow Barcelona to register for Champions League equipment, which can significantly reduce the team’s depth.
Barcelona’s economic hardships stem from years of unsustainable spending and revenue instability. To recover, the club is engaged in several controversial revenue generating measures, some of which have determined that UEFA is unacceptable under the Financial Fair Theatre (FFP) framework. One such measure would have 10% of the club’s broadcast rights for the next 25 years to be sold to a third party in 2022 for 267 million euros. Barcelona attempted to report the sale as “other operating profits.” However, UEFA classified the transaction as “profits from disposing of intangible assets.” This is not entitled to balance FFP.
Barcelona later sold 15% of the same rights for 400 million euros, but UEFA argues that such transactions are not eligible for operating profit status. The decision from the CAS supported this interpretation and contributed to the club violation of UEFA’s loss limit on the 2023-24 financial surveillance cycle.
Chelsea’s first violation and asset sales issues
Chelsea has also been found to violate UEFA financial regulations, primarily because they are unable to declare revenue from intra-company transactions. The club’s owners have tried to improve their financial position, a world record of £200 million by selling the Chelsea women’s team to related entities within the ownership group. However, UEFA rules prevent clubs from recognizing income to “sisters” or affiliates from selling assets, as they are used to artificially inflate club revenues.
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Unlike the Premier League, where several forms of related party transactions may be acceptable when disclosed transparently, UEFA strictly prohibits them in the calculation of financial sustainability metrics. Chelsea acknowledged their position in April 2024, saying they “concluded a discussion on mitigation factors that influence the submission of regulations.” As a first-time criminal, Chelsea may only face financial punishment, rather than sporting sanctions.
Aston Villa Violation and Potential Financial Fines
Aston Villa has also been reported to have violated UEFA restrictions on financial losses. Although the details of their case are not well known, it is understood that Villas have surpassed UEFA’s revised financial allowance, likely because they sought qualifications in Europe, improving their teams and rising wage costs.
Under UEFA’s updated financial sustainability regulations, which replaces the old financial fair play rules, clubs are allowed to lose up to 200 million euros (approximately £170 million) over three years. However, this limit is conditional. UEFA allows deductions from club losses on expenses on youth academies, women’s soccer development, and infrastructure such as stadiums and training facilities. Without such a deduction, it is not yet clear how the villa nearer has exceeded its limits.
Like Chelsea, the villa is expected to face a financial penalty without attached squad restrictions or point deductions. This is because it is the first recorded violation based on the current framework of UEFA.
Changing rules for UEFA: sustainability and team cost management
UEFA’s current financial regulations are based on sustainability principles rather than strict break-even targets. The key rule in question is the “soccer revenue” regulations. This is balanced over time and allows for controlled losses, unless it is attributable to financial engineering or the revenue manipulation of related parties.
Another central rule is the “squad cost ratio.” This limits the ability of the club to spend the revenue on player wages, relocations and agent fees. Currently, clubs are allowed to spend up to 80% of their revenue on these expenses. However, starting next season, that cap will drop to 70% in line with UEFA’s broader targets, adjusting spending more closely and preventing the club from acquiring unsustainable debt.
Barcelona, Chelsea and Villas need to carefully manage their players’ costs, especially in an environment that is under intense scrutiny from both UEFA and national regulators.
Impact on the club
For Barcelona, the meaning of the UEFA findings may be important. Reducing the Champions League squad registration limits could affect team depth and hinder competitive ambitions. The table is also theoretically deducted, so the club is facing a critical moment in the financial recovery process.
For Chelsea and Aston Villa, the fine could serve as a wake-up call to coordinate transfer strategies and internal financial engineering more closely with UEFA standards. Chelsea in particular may need to be more cautious about how they manage their multiclub ownership model, ensuring future transactions are fully compliant with UEFA regulations.
Overall, UEFA’s recent stance reflects wider changes in European football governance. An era of creative accounting and unconfirmed spending appears increasingly unacceptable as governing bodies tighten their surveillance and emphasize financial discipline. The Barcelona, Chelsea and Villa incidents serve as a prominent warning for other clubs operating on the financial edge of the modern game.
