The Competition Economics of Financial Fair Play

Oliver Budzinski, Ilmenau University of Technology explores The Competition Economics of Financial Fair Play.

ABSTRACT: This paper provides an economic analysis of the competition effects of UEFA’s financial fair play regulations. It concludes that the restrictive effects of the break-even rule cannot be justified by a legitimate objective defense (according to European competition policy) because significant financial problems due to overinvestment are not inherent to European football.