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Glossary
Every term that shows up in football finance stories — FFP, PSR, amortisation, squad cost ratio, release clause, fair value — defined in plain sentences.
Every term that turns up in a football finance story, defined in one or two sentences. Use the letters to filter, then follow the link to the explainer that does the work.
50+1 ruleA German ownership principle: members of a club must hold a majority of voting rights, so outside investors cannot outvote them.Read the explainer →
AmortisationWriting a transfer fee down in the accounts over the length of the contract, so the cost lands in each season rather than all at once.Read the explainer →
Annex / licensing decisionThe formal ruling a licensing body issues on a club’s compliance, including sanctions and settlement terms.Read the explainer →
APT (associated party transaction)A deal between a club and a business linked to its owners, tested for fair value before it counts.Read the explainer →
Assessment periodThe window of seasons a financial rule looks at — a single season is rarely the whole test.Read the explainer →
Break-even requirementA rule that compares eligible football revenue with eligible costs over a period, and sets a loss line the club must not cross.Read the explainer →
CapitalisationRecording a transfer fee as an asset instead of an expense, which is what makes amortisation possible.Read the explainer →
CFCBUEFA’s Club Financial Control Body: the panel that investigates and decides cases under the European licensing and financial rules.Read the explainer →
Development feeCompensation owed when a player who trained at one academy signs a first professional contract elsewhere.Read the explainer →
Eligible football revenueThe income a rule allows into the test — usually matchday, media and commercial football income, not owner money.Read the explainer →
Fair valueThe price a deal would reach between unrelated parties; deals above it can be adjusted down in the accounts.Read the explainer →
FFPFinancial Fair Play: the licensing framework that ties spending to football revenue.Read the explainer →
Image rightsPayments for the use of a player’s name and likeness, often separate from wages and treated differently in the accounts.Read the explainer →
InstalmentsA fee paid across seasons. The cash leaves later, but the accounting charge still follows the contract term.Read the explainer →
IntermediaryThe agent or agency in a transfer, paid by the club, the player or both.Read the explainer →
Matchday revenueTicket, hospitality and matchday sales — one of the three classic revenue lines, and the hardest to grow.Read the explainer →
Multi-club ownershipOne group holding stakes in several clubs, which raises questions about influence, transfers between them and competition entry.Read the explainer →
Net spendTransfer fees paid minus fees received in a window. A cash measure, not the accounting cost.Read the explainer →
Owner injectionMoney put in by owners. Some rules allow a capped amount, others exclude it from eligible revenue.Read the explainer →
Permitted lossesThe loss a club is allowed to make inside an assessment period before a rule is breached.Read the explainer →
Profit and sustainability rules (PSR)The domestic profitability test: adjusted accounts, a loss limit and a points-based sanction process.Read the explainer →
Related partyA person or company connected to the club or its owners; their deals are scrutinised for fair value.Read the explainer →
Release clauseA fixed sum written into a contract that lets the player leave if a club pays it.Read the explainer →
Sell-on clauseA share of a future transfer fee kept by the selling club.Read the explainer →
Solidarity paymentMoney redistributed to clubs that trained a player, paid out of international transfers.Read the explainer →
Squad cost ratioWages, amortisation and agent fees divided by football revenue — UEFA’s spending test.Read the explainer →
Transfer feeThe headline amount a buying club agrees to pay, before add-ons, agent fees and clauses.Read the explainer →
Wage billTotal player and staff salaries in a season, usually measured as a share of revenue.Read the explainer →
Working capitalMoney available for day-to-day running costs — the part of finance that decides whether wages are paid on time.Read the explainer →
Write-downReducing the book value of an asset when it is worth less than recorded — for example a player whose contract is running out.Read the explainer →
Please read this first. This is general information about the structure of football finance rules. It is not investment or legal advice, it is not a valuation of any club, and it does not describe the position of any specific club. Rules change, differ between competitions and are applied case by case by the bodies that write them.