By Adedapo Adesanya
Top-flight English football side, Wolverhampton Wanderers, have been fined by the Union of European Football Associations (UEFA) for breaching financial break-even requirements for the 2019-2020 season.
The club has now agreed to a settlement agreement with the European football regulator over the next two seasons.
Wolves will agree to a maximum deficit of €30 million (£27.79 million) for the financial year ending 2020, and to finally reach an acceptable break-even result by 2021.
If Wolves end up qualifying for the Champions League next season, they will only be allowed 23 players in their List A European squad instead of 25.
This will also be the case in 2021/22 unless the club fulfils all of the financial measures set out by UEFA’s financial investigatory chamber.
A statement from European football’s governing body read: “The settlement agreement covers the sporting seasons 2020/21 and 2021/22.
“Wolverhampton Wanderers FC undertakes to report a maximum break-even deficit of €30 million in the financial year ending in 2020 and to finally reach, in the 2021/22 season, an aggregate break-even result for the financial years ending in 2019, 2020 and 2021 within the acceptable deviation.
“Wolverhampton Wanderers FC agrees that, for the financial year ending in 2020, its employee benefits expenses are restricted.
“Wolverhampton Wanderers FC agrees to pay a total financial contribution up to €0.6 million, which will be withheld from any revenues it earns from participating in UEFA competitions.
“Of this amount, €0.2 million shall be paid in full while the remaining balance of €0.4 million is conditional depending on the club’s compliance with the break-even target stated in the settlement agreement.
“Wolverhampton Wanderers FC accepts that, for the season 2020/21, it may only include a maximum of 23 players in its List A for the participation in UEFA competitions, instead of the maximum of 25 players as foreseen in the relevant competition regulations.
“Such restriction will continue to apply for the season 2021/22 unless the club fulfils all financial measures agreed with the CFCB Investigatory Chamber.”
Ligue 1 side Lille and Turkish side, Istanbul Basaksehir have also been found guilty of similar breaches by UEFA. Lille – who had a deficit of more than €30 million over three seasons and posted losses of €100 million in 2018 – have since reached a settlement agreement with UEFA.
“The financial situation from the 2017/18 season triggered an investigation from the European body and necessitated an agreement between the two parties which the club is satisfied with, judging it to be fair,” the Ligue 1 side said.
Wolves’ chances of playing European football next season remain uncertain because Arsenal beat Chelsea in the FA Cup final and because it finished in the seventh position, the clubs lost out on qualification and its hope to play in Europe next season rests on winning this year’s Europa League.
Forward Raul Jimenez’s penalty secured a 2-1 aggregate win over Olympiakos to send Wolves into the last eight where they will face Spanish side and the competition’s biggest winners, Sevilla.
Dipo Olowookere