Roma On Course To Meet Financial Fair Play Regulations

Roma are on course to meet Financial Fair Play regulations. The final financial reports for the 2015/16 season will be ready, as usual, by the end of the summer, but a preliminary examination of the accounts shows that the Giallorossi have essentially reached the financial targets imposed on them by UEFA and, therefore, will be able to avoid being subject to the sanctions set out in May 2015 in the settlement agreement with UEFA.

Just over a year ago, Roma came under the scrutiny of the Club Financial Control Body for a failure to comply with Financial Fair Play parameters and a series of restrictions was set on them for the 2015-2018 seasons by UEFA. The Giallorossi committed to registering a maximum deficit of €30m for the seasons ending 2015 and 2016, and to achieving a balanced budget (break-even compliance), for the following years.

In addition, the club owned by James Pallotta had to accept other limitations: the “A” list for UEFA competitions was made up of 22 players (instead of 25) and in the summer 2015 and winter 2016 transfer windows the club had to operate to a surplus from player purchases and sales and to keep the large wage bill steady. A fine of €6m was also imposed on Roma, €2m of which had to be paid immediately with the remaining €4m suspended.

Now, in all likelihood, these restrictions will be lifted for the start of the new season: in short, no €4m fine, fewer transfer market constraints and the “A” list expanded back to 25 players. The defined cumulative deficit of the financial years ending 30th June 2015 and 2016 shouldn’t have been exceeded. In 2015 Roma registered a loss of €41m. In 2016 the club’s losses should be less than half of those of the previous year, in part thanks to around €30m income from player sales (the most important of which was the €32m sale of Miralem Pjanic to Juventus, announced on 13th June).

In reality, Roma’s deficit is also made smaller according to Financial Fair Play regulations because they don’t consider costs incurred for infrastructure and youth development (less than €25m in 2015 and significantly lower than €5m in 2016) to be relevant. Ultimately, adding up the losses from 2015 and 2016, the budgets of AS Roma should show a ‘legitimate’ deficit in the eyes of UEFA. However, if the accountants in Nyon weren’t to recognise all of the infrastructural and youth development costs indicated by Roma, and if the €30m restriction were to be (slightly) exceeded, then the tolerance thresholds for clubs who have complied with all other conditions imposed in the settlement agreements would be triggered.

This article is a translation – the original was written by Marco Bellinazzo for Italia and can be read here.


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