Manchester United and Manchester City will both be affected by new regulations being brought in by UEFA for the 2022/23 season.
City will of course be playing in the Champions League again next season after finishing as champions during the 2021/22 Premier League campaign, and will be aiming to end their long wait for a first European crown. United, meanwhile, will be plying their trade in the Europa League, having missed out on a top-four finish following a dismal season.
Ahead of the new season, UEFA have introduced a new set of regulations which aim to tighten up on licensing and financial sustainability issues. The measures have been introduced to try and bring more equality between the so-called bigger teams and smaller sides in each of the three European competitions.
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Financial Fair Play has effectively been replaced, with excessive spending being limited for the continent’s elite clubs. Other changes see the introduction of wage caps for all clubs, and the idea that all sides’ losses will be minimalised going forward.
Head of Sport at Mischon de Reya Simon Leaf explained what the new measures mean for the likes of United and City, explaining: "This marks the most significant reform to the financial regulation of European football in a generation. UEFA is the grandfather of Financial Fair Play and we expect both the Premier League and the EFL to also amend their rules to ensure that the domestic football finance regulations remain in sync with the European regime.
"Those UK clubs competing in European competition will be acutely aware of the changes that have now come into force and we are likely to see a greater pressure on transfer fees and wages for those clubs that regularly compete in European competition as a result.
"Alongside the other changes to the domestic football regulatory landscape that are on the horizon following the recent Crouch report, we are entering a period of great uncertainty for clubs across the country, as they wait to see just how the relevant regulators will adapt to the new rules."
Managing Associates in the Sports group sector of the same financial company Tom Murray added: "This is the first of many upcoming reforms to the financial regulation of football. UEFA's Financial Fair Play regime may be dead but the reign of Financial Sustainability is about to begin, bringing with it a host of legal challenges and potential judicial reviews as clubs grapple one another to gain competitive advantage."
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