Euroleague Basketball has unveiled groundbreaking updates to its Financial Stability and Fair Play Regulations (FSFPR), marking a European first.
The updates bring in Competitive Balance Standards (CBS), which have been approved by the Euroleague Commercial Assets’ Assembly of Syndicate Shareholders. There will be a transition period of one season (2024/25) for clubs to adjust to these new rules, with full implementation expected by the 2027/28 season as the changes are gradually rolled out over the next two years.
These new standards will work alongside the existing FSFPR to enhance sustainability, ensure competitive balance, prevent inappropriate practices, increase transparency among teams and align the objectives of all stakeholders.
Developed over two years, the CBS aims to address the current needs of clubs and the league by establishing equal remuneration levels based on the average collective revenues of EuroLeague clubs, rather than individual club revenues.
This approach looks to enhance the pan-European nature of the league by standardising the impact of varying taxation models across the continent, using net amounts to evaluate all indicators.
The updated FSFPR introduces three remuneration levels – Base, High and Low – based on average revenues over two seasons. For the first time, a minimum spend of 32% of collective revenues will be required for player salaries. This new standard aims to ensure fair compensation for EuroLeague athletes and strengthen their partnership with the league.
The Low Remuneration Level (LRL) requires clubs to spend at least 32% of the average Licensed Clubs’ Defined Revenues (LCDR), calculated at fair-market value over two seasons, on player salaries. Clubs not operating under a long-term license may receive a reduction in this minimum requirement.
Secondly, the Base Remuneration Level (BRL) sets the maximum amount clubs can spend on player salaries at 40% of the average LCDR. This excludes spending on Anchor Players, U23 Players, Extended-Tenure Players, Long-Term Injured Players and Medium-Range Exceptions.
Finally, the High Remuneration Level (HRL) allows clubs to spend up to 60% of the average LCDR on player salaries. This includes spending on Anchor Players but excludes U23 Players, Extended-Tenure Players, Long-Term Injured Players and Medium-Range Exceptions.
These rules must be followed by all participating clubs. Any club that exceeds the Base or High Remuneration Levels will be required to compensate the other clubs that remain within these limits.
In a release, the league said: “Euroleague Basketball, on behalf of its clubs, thanks the ELPA for their collaboration in bringing this initiative to fruition, as it strongly believes it is a critical step towards a fully sustainable future, a greater protection of players from financial instability, and a partnership that aligns clubs, players and the league office under the common, overarching objective of growing the EuroLeague.
Financial Fair Play (FFP) is a major issue in European sports at the moment. As Manchester City‘s hearing against the Premier League begins today (16 September), the club faces 115 charges related to alleged breaches of FFP rules and inaccuracies in its financial reporting.
