UEFA is set to replace Financial Fair Play with a new luxury tax that teams who violate their spending rules would pay.
The European governing body is struggling to contain the spending by the top clubs in its competitions despite developing the FFP to checkmate it.
They are now coming out with a new tool that would get the finances of clubs under control, hopefully.
The Times claim that the governing body is planning to introduce a salary cap that would ensure no club’s wages are over 70% of their revenue.
They loosened FFP because of the coronavirus pandemic and that has helped clubs with money to spend to go on a spending spree.
But the report claims they aim to present the luxury tax proposal next month and make it official in 2022.
If a club breaches the salary cap proposed, they will be fined a luxury tax, which would then be redistributed among the other clubs in the organisation.
Top European clubs have struggled with their finances since the covid-19 hit with their reckless spending prior to the pandemic to blame.
If there is more control over how much they can spend, UEFA might help the clubs weather the storm better the next time something this unexpected happens.