CFCB update on break-even monitoring for 2016/17
Friday, June 9, 2017
The CFCB Investigatory Chamber has provided an update on the monitoring of the break-even requirement for 2016/17.
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The UEFA Club Financial Control Body (CFCB) Investigatory Chamber, headed by chief investigator Yves Leterme, convened on 9 June 2017 and has provided an update on the monitoring of the break-even requirement for clubs having participated to the UEFA club competitions 2016/17.
The CFCB has observed the overall positive impact of Financial Fair Play (FFP) on the latest figures monitored with a significant decrease of clubs under investigations. At the end of the monitoring period 2016/17, the CFCB today announced that one club, FC Porto, was not in compliance with the break-even requirement and has agreed to conclude a settlement agreement.
Finally, the CFCB Investigatory Chamber has provided an update on the monitoring of the remaining clubs having signed settlement agreements in previous years (refer to previous communication dated 21 April 2017).
The CFCB Investigatory Chamber confirmed that FC Astana (Kazakhstan), FC Krasnodar (Russia), FC Lokomotiv Moscow (Russia) and FC Zenit (Russia) have complied with the targets set for season 2016/17. The monitoring of FC Rubin Kazan (Russia) is ongoing.
With the conclusion of one new agreement with Porto in the 2016/17 season, twelve clubs are currently under settlement agreement.
Below are the details of the new settlement agreement:
Futebol Clube do Porto – Futebol, SAD
• The settlement agreement covers the sporting seasons 2017/18, 2018/19, 2019/20 and 2020/21.
• Porto undertakes to reach full break-even compliance by monitoring period 2020/21 (i.e. reporting periods ending in 2018, 2019 and 2020).
• Porto agrees to report a maximum break-even deficit of €30m for the financial year ending in 2017, €20m in financial year ending 2018 and €10m for the financial year ending in 2019.
• Porto agrees that, for the financial year ending in 2018 and for the financial year ending in 2019, the employee benefit expenses to revenue ratio as well as finance costs are restricted and that the net result from transfer activities is defined.
• Porto agrees to pay a total amount up to €2.2m, which will be withheld from any revenues it earns from participating in UEFA competitions commencing in season 2016/17. Of this amount, €0.7m shall be paid in full, irrespective of any early exit from the settlement regime. Payment of the remaining €1.5m is conditional and may be withheld in certain circumstances depending on the club's compliance with the operational and financial measures imposed in the settlement agreement.
• Porto accepts that it will be subject to a limitation on the number of players that it may include on the A list for the purposes of participation in UEFA competitions. Specifically, for season 2017/18, Porto may only register a maximum of 22 players on the A list, instead of the potential maximum of 25 as foreseen in the relevant competition regulations, and 23 players for the 2018/19 season. Such restriction will be lifted for seasons 2019/20 and/or 2020/21 if the club fulfils the operational and financial measures agreed with the UEFA CFCB.
• Porto accepts, for the duration of the settlement agreement, a calculated limitation on the number of new registrations it may include within its A list for the purposes of participation in UEFA competitions. This calculation is based on the club's net transfer position in each respective registration period covered by the agreement. Such restriction will be lifted as for seasons 2019/20 and/or 2020/21 if the club fulfils the operational and financial measures agreed with the UEFA CFCB.