Liverpool are one of seven clubs who will face “investigation” from UEFA regarding Financial Fair Play, it has been confirmed today.
However, the news isn’t something to worry about, as explained earlier in this article.
The investigation relates to financial reporting periods ending in 2012 and 2013 – when Liverpool reported losses of £40.5m and £49.8m, respectively.
Under Uefa rules, clubs competing in Europe must limit their losses to £35.4m over two seasons.
However, as explained in The Guardian, FFP allows certain spending streams, including youth development and stadium expenditure, to exist outside of its strict guidelines and Liverpool will argue that a £35m chunk of their 2011-12 deficit was attached to former co-owner Tom Hicks’ aborted plans for a new stadium on Stanley Park.
Speaking at his pre-Everton press conference, manager Brendan Rodgers commented: “It’s obviously something that will be dealt with by the directors. It’s something we’re comfortable with because we’re great advocates of financial fair play. It’s ongoing with the club.”
Liverpool will face no immediate sanction and they are confident they will be able to explain the losses.
John W. Henry has been a strong advocate of financial fair play since FSG bought the club four years ago. It seems daft that a club like Liverpool – and others under investigation like Inter Milan and Roma – who are rebuilding in order to get back among the club’s funded by oligarch owners are the ones under investigation.