Indeed, the economic state of a club is influenced by its success on the pitch, which can be affected by the uncertainty of competition and cannot be determined by just a one year of break-even outcome (Dunbar, N. 2015: 4). Therefore, Art. 59 “Notion of monitoring period” states: “A monitoring period is the period over which a licensee is assessed for the purpose of the break-even requirement.
As a rule, it covers three reporting periods (UEFA, 2015: 37).” That means, for instance, the monitoring period for the season 2015/16 covered the financial years ending in 2015, 2014 and 2013 (Long, C. R.
2012: 82). However, there was an exception just for the first license season 2013/14 and it covered only the previous two financial periods (Geey, D. 2011: para. 11).
Normally, break-even means equity of income and expenses (Geey, D. 2011: para. 8).
However, as it is mentioned above FFP has an exemption rule regarding break-even, which allows clubs to have an “acceptable deviation” of € 5 million for the monitored three years period (Morrow, S. 2014: 17). Specifically, it means a club could still be granted a license, even if it shows a deficit at the end of a financial year, but counterbalances it in overall with surpluses from other 2 years (Müller, J. C. et al.
2012: 129). TE1 In addition, this amount could be increased up to € 45 million for licensing seasons 2013/14, 2014/15 (i.e. in average € 15 million per year) and € 30 million for the licensing seasons 2015/16, 2016/17 and 2017/18 (i.
e. € 10 million per year), as long as private benefactors and/or other equity participants compensate the increased deficit by capital contributions or unconditional gifts (Gjorgo, K., & Llenga, E. 2015: 16; Peeters, T., & Szymanski, S.
2012: 24). From season 2018/2019 onwards UEFA will decrease the amount gradually until it reaches to real state of break-even (Peeters, T., & Szymanski, S. 2012: 24; Vöpel, H.
2013: 5). TE1SIGNIFICANT PLAGIARISM WAS DETECTED!!! INDIRECT!!!