UEFA Investigates Liverpool For Financial Fair Play Violation

Liverpool have been named as one of seven targets of a UEFA Financial Fair Play investigation that will take place in the coming months. The other teams identified for the investigation are Monaco, Inter Milan, Roma, Besiktas, Sporting Lisbon and Krasnodar.

FFP hasn't been much of a concern for Liverpool in recent years, but a return to the Champions League has prompted monetary losses in their transfer business and opened them up to investigation. According to FFP (as shown in a chart in this BBC article), clubs cannot repeatedly spend more than their generated revenues and are obliged to meet all their transfer and employee payment commitments at all times. Additionally, clubs competing in Europe must limit their losses to £35.4m over two seasons.

While Liverpool have lost £90m through the transfer market market over the past two seasons, recent commercial deals make them confident that they haven't breached any regulations.

Brendan Rodgers said, "It's obviously something that will be dealt with by the directors."

"It's something we're comfortable with because we're great advocates of Financial Fair Play. It's ongoing with the club."

UEFA's official statement on the matter is: "The Club Financial Control Body has opened formal investigations into seven clubs as they disclosed a break-even deficit on the basis of their financial reporting periods ending in 2012 and 2013."

Being the subject of an investigation doesn't necessarily mean that Liverpool will be found guilty, so there's no reason to panic at this point. Stay tuned as this story progresses in the near future.