November 21 – In 2022 UEFA launched its new Financial Sustainability Regulations (FSR) with UEFA president Aleksander Čeferin saying that the “evolution of the football industry, alongside the inevitable financial effects of the pandemic, has shown the need for wholesale reform and new financial sustainability regulations.”
With the Premier League struggling to find a financial fair play model that all its clubs are comfortable with, the lessons and rigour of UEFA’s model is worth closer examination.
An analysis of 24 leading clubs by Football Benchmark concludes that just three years in to the new rules, FSR is “having a stabilising influence on club finances”.
“The combined swing of nearly €400 million in aggregate net results and growth in both operating and total revenues show a sector moving towards greater balance,” says the report.
The change in fortune can’t be attributed wholly to the new FSR regulations but they can be credited with being a catalyst for stronger financial management across the clubs surveyed. Post-pandemic recovery and the participation in European club competition are recognised as being key contributors of a move towards stronger financial sustainability.
The Football Benchmark report is focussed on profitability and how the teams surveyed have adapted to the new framework to achieve the improved financials. The 24 clubs in the sample are: AC Milan; ACF Fiorentina; AFC Ajax; AZ Alkmaar; Bologna FC 1909; Borussia Dortmund; Celtic FC; FC Barcelona; FC Bayern München; FC Internazionale Milano; FC Porto; FC Twente; Feyenoord Rotterdam; Galatasaray SK; Juventus FC; Manchester United FC; Paris Saint-Germain FC; PSV Eindhoven; Real Madrid CF; SL Benfica; Sporting Clube de Braga; Sporting Clube de Portugal; SS Lazio; Vitória de Guimarães.
All the clubs showed major swings from loss to profit over the past three seasons, moving from a collective average loss of €296 million in 2022/23 to an overall average profit of €100 million in 2024/25 (the €400 million average uplift), according to the report.
Highlighting three clubs, Football Benchmark says: “The substantial reduction in losses at Juventus FC and Paris Saint-Germain FC, together with FC Internazionale’s first profitable season in the 21st century, constitute some of the most significant financial improvements observed over the past three seasons…results vary between leagues and individual clubs, the overall direction is consistent. Losses have narrowed, several clubs have returned to surplus, and the group of selected clubs is operating on a stronger financial footing.”
Increased revenues have been the bedrock of improved financial performance with growth seen in all the 24 clubs from an average of €298 million in 2022/23 to €362 million in 2024/25, a rise of around 21%.
More sponsorship, especially from global brands, and increases in matchday income – particular where clubs have invested in stadium infrastructure – have been the drivers of revenue.
The example of Real Madrid shows a 43% increase in operating revenues following the full operation of the new Santiago Bernabéu. The increased UEFA revenues from its reformatted Champions League plus the addition of the Club World Cup are also identified as “crucial” for revenue growth.
“The consistency of growth over the three seasons indicates that leading clubs are rebuilding and diversifying their income base, providing a stronger and more sustainable foundation for profitability under the new regulatory framework,” says the report.
The influence of player trading on overall financial performance, always the go-to financial life raft when clubs struggle, appears to be reducing as clubs have focussed on recurring and manageable income streams rather than the lottery of the transfer market.
“It is evident that many clubs are taking a more measured approach to player spending and wage structures as they adapt to the new regulatory environment. The phased introduction of the squad cost ratio, which limits spending on wages, transfers, and agent fees to 70% of club revenues, is already impacting discipline,” says the report.
The report authors acknowledge that the regulations aren’t in place to grow club profitability, but say that it is a key indicator of financial health.
“The broader framework appears to be encouraging more discipline, with clubs increasingly aligning spending to revenues and planning within more sustainable parameters,” the report concludes.
“These developments also carry wider implications. As football continues to attract institutional investment, improved profitability and more predictable performance enhance the credibility and long-term value of clubs. The emergence of a more balanced operating model can strengthen confidence in the sector and support continued growth.”
To see the full report click here.
Contact the writer of this story at moc.l1763722964labto1763722964ofdlr1763722964owedi1763722964sni@n1763722964osloh1763722964cin.l1763722964uap1763722964
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