Financial Fair Play (FFP) is a set of regulations that was designed by governing bodies to regulate the spending and revenue of football clubs. The original aim of FFP was to maintain the financial sustainability of football clubs, through a range of rules. Whilst the specific rules themselves varied, key aspects involved clubs needing to break even and limit financial losses, as well as having controls on club ownership and close party transactions.
The Premier League and UEFA both still use these rules, but the Premier League refers to them as ‘PSR’ (Profit and Sustainability) and UEFA’s rules are known as ‘Financial Sustainability’. FFP rules were introduced for a number of reasons, but most importantly, the aim was to help prevent football clubs from experiencing financial difficulties.
WHAT ARE THE CURRENT FINANCIAL RULES AND REGULATIONS IN WOMEN’S FOOTBALL?
Currently, there is significantly less financial regulation within women’s football in the United Kingdom and Europe, than there is in men’s football. This is a cause for concern, as FFP rules were introduced in order to help protect football clubs better from financial difficulties, so without these rules, women’s football does not have the same level of financial protection as men’s football does.
Currently, in the WSL, there is a salary cap which allows teams to spend 40% of their turnover on players’ wages. However, these totals can be merged with the men’s team within the same club, so clubs with a greater turnover can spend 40% more of a much larger pot of cash because the club generates much more money overall.
WHAT IS THE EFFECT?
One of the effects of this lack of financial regulation within women’s football is that it creates a significant financial disparity between clubs within the WSL, as there will be a significant difference in the amount of money that clubs can spend on player wages. As well as creating a disparity between clubs within the WSL, this also creates a significant financial gap between clubs in the WSL and the WSL2.
This could be a contributing factor in a gap between the WSL and the WSL2. We have seen this in the previous two seasons, where Crystal Palace and Bristol City were promoted to the WSL, but then relegated the following season, suggesting that bridging the gap between the two leagues was a difficulty.
Speaking at the European Club Associations first women’s football summit, Francesca Whitfield, who oversees finances at Manchester United, spoke about the lack of financial regulations. She said:
“Currently in the WSL we have a salary cap system which is 40% of revenue, but that includes parent club income, meaning the larger clubs naturally benefit from shirt deals on the men’s side. That’s creating a gap that is affecting the product, and this can’t be something that we just address domestically, this has to be something we address on a European level to make sure the European tournaments are the best and we’re at the forefront of that.”
Hence, it is evident that the lack of FFP rules within women’s football is contributing to a disparity between clubs within the WSL, and between the leagues in women’s football in England. Therefore, a change in financial regulations could contribute to reducing this gap.
FFP AS A FORM OF PROTECTION FOR CLUBS
Another benefit of changing FFP rules for women’s football is that women’s football teams would be better protected. There have been a few instances this season where clubs have made decisions that negatively impact their women’s team, due to financial difficulties. Blackburn Rovers are the latest example of this, after they withdrew from the Women’s Championship because the owner was reportedly unwilling to meet the league’s requirements on facilities, wellbeing and staffing.
Reading Women also experienced significant financial difficulties this season and were demoted as a result. Whilst tighter FFP rules wouldn’t solve all of the financial difficulties that clubs face or mean that club owners would provide enough investment in their women’s team, FFP rules could have a significant impact in protecting clubs from difficult financial situations, as the rules were initially created to prevent.
It is clear that women’s football would benefit from more significant FFP rules for two main reasons: it would help reduce financial disparity between teams within the WSL and teams in different leagues, and it would also help to provide better financial protection and stability for women’s football teams.
