Fixing Financial Fair Play: How to Make European Soccer's Salary Cap

When Spanish superclub Real Madrid spent €100 million on Welsh winger Gareth Bale in 2013, soccer ("football") pundits all had the same question: Is Financial Fair Play a joke? European football's governing body has implemented a set of rules commonly known as Financial Fair Play, designed to stem runaway spending that has become endemic to the modern game. Chief among the regulations is the "break-even" provision, which limits teams to spending on football only what they bring in from football - a type of salary cap based on revenues. Clubs are already looking for ways to circumvent the break-even provision in order to stay competitive. Legal challenge to the rules, different tax rules, and different club ownership structures in different countries could undermine the rules and limiting enforcement. Ultimately, if European football wants to clean up its books – competition be damned – successful passage of FFP-like regulations in each individual member country would be the best course of action.