Financial sustainability
Financial sustainability is the set of rules that require clubs to spend within their means. Clubs are assessed on the balance of their income and outgoings over a period, and the rules apply across the game.
Why it matters
It matters because it connects the money to management. A competition that distributes large sums also has an interest in how they are used, and the sustainability rules keep the clubs that receive it in sound health.
Where it is used
It is used in the assessment of clubs. The rules are read alongside the distribution, so a club's European income is considered together with its spending, and the two systems meet in the finances of a season.
How to read it
Read financial sustainability as the management of the money. It decides how a club may use what it earns, and it is the framework that turns the revenue of the competition into a requirement of sound practice.
What it means
the rules that require clubs to spend within their means
Financial sustainability is one of the working terms of the competition. This entry explains it as a mechanism that holds true from season to season, so it can be read on its own or alongside the other entries in the glossary of the tournament.
- Rules requiring clubs to spend within their means.
- Clubs are assessed over a period.
- Read alongside the distribution of money.
- Protects the integrity of the competition.
- Applies across the clubs of the game.
- The management side of the money.