A series of new steps in the Financial Stability and Fair Play Regulations (FSFPR) has been introduced by Euroleague Basketball to protect the long-term viability and sustainability of the clubs and the competition in the Turkish Airlines EuroLeague and 7DAYS EuroCup.
Among the new FSFPR provisions passed by ECA Shareholders when they met in July in Munich are increased transparency mechanisms, improved club budget valuation criteria, and progressive reductions in the maximum shareholder contribution allowed to a club's total budget, from the current 65% to 40% in the 2022-23 season.
Additionally, a new sanctions structure has been established for when a club exceeds the maximum shareholder contribution allowed. The amount of the penalty will range between 10 and 180 per cent of the overspend, depending on the severity of the violation. The penalties will be distributed among the other participating clubs, helping to improve the competitive balance of the competition.
The FSFPR complement other approved league-wide initiatives, such as EuroLeague BOCS, that are focused upon maximizing club revenues through knowledge sharing and consultancy services.
Finally, it also was agreed that each club's commercial partnerships will be evaluated by external consultants in order to prevent inflated valuations of deals.