Is Real Madrid violating FIFA’s Financial Fair Play?
By Ben Sundock
Real Madrid has already had a bigger summer transfer window than they did a year ago signing four players including the likes of Luka Jovic and Eden Hazard in the last week. However, all that spending could violate FIFA’s Financial Fair Play statutes. Here is what the club will have to do to avoid being penalized.
President Florentino Perez has thrown his pocketbook wide open the last couple months buying and buying to improve upon one of the club’s worst La Liga season’s in the last decade. While that is all well and good – and I’m sure all of us fans can agree, necessary – there is a slight issue that must be dealt with before the beginning of the new campaign in the fall.
After buying defender Eder Militao, young Brazilian Rodrygo Goes, and spending upwards of €160 million on Jovic and Hazard alone, Real Madrid must balance out their books by now selling some players.
According to the statute implemented by FIFA and UEFA in September 2009, the idea is to “prevent clubs that qualify for its competitions from spending beyond their means and stamp out what their president Michael Platini called “financial doping” within football.”
Furthermore, clubs must follow a strict set of financial guidelines which are intended to deter unfair transfers among the biggest clubs in the world where the smaller clubs are unable to compete for players.
"“Clubs can spend up to 5m euros (£3.9m) more than they earn per assessment period, although, under this monitoring period, total losses of 45m euros (£35m) were permitted as long as clubs had owners who could cover such amounts.”"
The assessment period is over three-years which does help Perez and gives the Los Blancos board a little bit of leeway having spent very little money in the transfer window. But, they will have to sell some big name players in order to recoup some of those funds.
AS has reported that the club will need to sell several players in order to make €300 million back before the competitive season kicks off in August.
As it stands right now, Real Madrid is way above the limit of FIFA FFP and if they do indeed want sign Paul Pogba as many outlets are reporting, that amount will be even higher.
The players who could be offloaded are the usual culprits – James Rodriguez, Dani Ceballos, Gareth Bale, and maybe even Mateo Kovacic – but those four would likely not equate to €300 million.
Next. The signing of Luka Jovic signals the end of Borja Mayoral’s time with the club. dark
Thank goodness I am not a club president because it is incredibly difficult to manage the buying and selling of players while remaining inside the FIFA rules. I know Florentino Perez can cook up something to get Real Madrid back eligible under the Financial Fair Play sanctions, but it will be very difficult.
We will continue to keep a very close eye on the transfer rumors and the moves being made in the market.