UEFA has penalised Manchester United €300,000 for claiming a’minor break-even deficit,’ according to reports.
The financial penalty levied on the club is related to prior Financial Fair Play [FFP] laws and historical concerns.
According to UEFA, the goal of the settlement agreements is to ‘accompany both clubs through the transitional period between the “old” FFP criteria and the “new” financial sustainability regulatory framework’. It will be implemented in stages beginning in fiscal year 2023.
“While disappointed by the outcome, Manchester United accepts this fine for what UEFA acknowledges to be a minor technical breach of its previous Financial Fair Play rules,” United said in a statement in reaction to the allegation.
“This reflected a change in the way that UEFA adjusted for Covid-19 losses during the 2022 reporting period, which allowed us to recognise only €15million of the €281m of revenues lost due to the pandemic within the FFP calculation.
“Post pandemic, the clubs’ revenues have recovered strongly and are forecast to reach a record level in the current financial year. The club continues to support the enforcement of rules to promote financial fair play and sustainability across domestic and European football.”
United suffered €47 million in Covid-19 losses during the 2022 monitoring period, on top of €234 million in pandemic-related losses in 2019/20 and 2020/21. Those funds were greater than any other Premier League club had ever seen.
United, on the other hand, were unable to account for that loss in their 2022 break-even calculation due to an unanticipated change in how UEFA regarded Covid-19 losses during the transition to its revamped financial sustainability regulation framework.
The Premier League did allow the Covid-19 modifications for 2022, indicating that United completely met the domestic FFP criteria.
Furthermore, the club has stated that the fee will have no influence on their summer signing budget. However, United has warned that they, like other clubs, must stay cautious of FFP limits and what they may spend in the future.