The Board of Directors of the Saudi Arabian Football Association has approved the commencement of the founding committee of the Financial Fair Play Law coinciding with the financial year of sports clubs and the issuance of financial statements corresponding to June 30, 2022.
The Committee began its work after holding a series of meetings and seminars to determine the mechanism of work, regulations and terms for the implementation of the project.
The Board of Directors of the Saudi Federation, at its meeting on November 28, 2021, approved the establishment of the founding committee of the Financial Fair Play Law.
The founding committee aims at the first stage of its work to prepare by-laws and regulations to ensure the control of the efficiency of spending, promote financial stability and create financial stability to achieve a financial balance between income and expenditure through joint work with the Financial Efficiency Committee under the Ministry of Sports.
The Committee has set a timetable for the gradual implementation of plans and targets over the next 3 years to give clubs the necessary time to adapt to the new phase, which will begin with the review and analysis of club financial statements published in June. 30 and extraction of financial indicators that focus on the following:
1- Establishing an acceptable percentage of deficit that cannot be exceeded, provided that this percentage is gradually reduced on an annual basis, and will be determined later after reviewing and analyzing the financial statements of the clubs.
2- Determination of the percentage of wages and expenses associated with football activities, so that it does not exceed a certain percentage of the club’s income, provided that it will be determined later after studying and analyzing the financial statements of the clubs.
The committee plans to meet with the clubs in the coming period to explain the project in detail.
Notably, the founding committee includes the Chairman of the Finance Committee, the Chairman of the Players’ Professionalism and Status Committee, the Director of the Legal Department of the Saudi Arabian Football Association, representatives of the Saudi Professional League, the Financial Performance and Club Support Strategy Committee under the Ministry of Sports, and an external financial auditor.
