The 36 clubs across Bundesliga and 2. Bundesliga have voted in favor of a new Financial Fair Play (FFP) regulation that limits club spending on player wages to 70% of revenue, following a model similar to one soon to be adopted by the Premier League.
Morningstar DBRS, one of the world’s leading credit rating agencies, welcomed the measure, stating that it “reinforces financial governance in European football, improves the credit profile of the sector, and strengthens clubs’ ability to attract investors.â€
Key Details of the New Bundesliga FFP
- Player wage and squad costs cannot exceed 70% of club revenue.
- Clubs failing to comply may face restrictions on transfers and registrations.
- The regulation aligns with UEFA’s existing framework for financial sustainability, including the Squad Cost Ratio (SCR) introduced in the 2023-24 season.
Morningstar DBRS emphasized that the new rule is expected to reduce excessive spending on salaries and transfers while enabling long-term investment in club infrastructure and development.
European Context
The initiative continues the trend set by UEFA, which pioneered financial regulations in 2011 to curb losses that once totaled around €1.5 billion annually across European clubs. The Premier League is also updating its FFP system next season, setting limits of 85% of revenue for domestic clubs and 70% for European competition participants, with additional restrictions for the “Big Six†teams.
LaLiga’s 1:1 rule, by comparison, strictly links spending to revenues, requiring clubs to balance new player acquisitions against previous income to maintain sustainability.
Outlook
By adopting this framework, the Bundesliga aims to promote financial stability, improve governance, and support sustainable investment, setting a benchmark for other leagues to follow. Morningstar DBRS concludes that stronger financial controls will enhance club creditworthiness and investor confidence, ultimately benefitting the growth of German football.