The name “Financial Fair Play” implies that the rule would promote fairness and equality throughout European soccer. However, as discussed in this section, this is not the case. Financial Fair Play favors big market clubs that naturally draw larger audiences and sponsorship deals. The gap between revenue generated from sponsorships between large and small clubs is astounding. Larger clubs then turn this income into higher wages for their players, which, in turn, leads to higher quality players on the roster. A team’s average salary is directly correlated to their success in a league. When one team pays its players twice as much as another, it is unrealistic to expect a fair and equal competition. When comparing competitive balance in European soccer leagues bound by Financial Fair Play and some American sports leagues that implement a salary cap, it is clear that a salary cap enhances a league’s competitiveness, leading to more intriguing matchups.

Does Unequal Sponsorship Income Widen the Gap Between EPL Teams?

Player Salaries vs. League Performance

Comparison with Salary Capped Leagues