UEFA updated on the European Club Football Recovery Plan which seeks to use UEFA club competition revenues as security to allow European clubs access to liquidity over years to come.
UEFA has been exploring ways to relieve part of the clubs’ income gap from Covid-19, whilst simultaneously providing clubs with a sustainable long-term financing solution. Starting with an estimated initial amount of €2bn, the financing program is expected to grow over time.
The objective of this financing program is to structurally improve the financial stability of the European football clubs through leveraging UEFA’s club competition media rights revenues. The program is intended to benefit top divisions European clubs subject to meeting certain eligibility criteria. These will include financial and sporting parameters, as well as compliance with club licensing and financial fair play regulations.
The program will provide eligible clubs with a stable source of funding at competitive rates over a long period of time, thus establishing a framework for future football funding.
Clubs will initially be offered the opportunity to restructure existing transfer payables to longer payment periods as well as factor in existing transfer receivables.
The financing prograe will also be accompanied by the implementation of stricter Club Licensing and Financial Fair Play regulations, currently being discussed with football stakeholders. The ultimate goal being the financial stability of the entire European club football ecosystem.
