K.1 Squad cost ratio numerator - Club Licensing

UEFA Club Licensing and Financial Sustainability Regulations

Content Type
Technical Regulations
Specific Regulations
Club Licensing
Enforcement Date
1 July 2023

Definitions for the calculation of the squad cost ratio numerator are as follows:


Employee benefit expenses of relevant persons

  1. Employee benefit expenses of relevant persons are the aggregate of the employee benefit expenses incurred by the licensee or any entity of the reporting perimeter, as defined in Article 65, in respect of each relevant person.

  2. Relevant persons include:

    1. each professional male player registered with the licensee at any time during the relevant period;

    2. any other professional male player whose registration the licensee has agreed to temporarily transfer to another football club for the relevant period;

    3. any other professional male player in respect of whom the licensee has incurred employee benefit expenses in the relevant period;

    4. any person who acted as head coach, as defined in Article 47, in the relevant period; and

    5. any other person who previously acted as head coach and for whose role as head coach the licensee has incurred employee benefit expenses in the relevant period.

  3. Employee benefit expenses of relevant persons include:

    1. gross wages/salaries, i.e. gross of any income tax and employee social security charges;

    2. non-monetary benefits for current employment e.g. benefits-in-kind, access to private medical care, housing, cars and free or subsidised goods and services;

    3. signing-on and loyalty payments;

    4. sporting performance bonus costs and other bonus costs;

    5. post-employment benefits, including pension contributions and any lump sum payments on retirement, and any other post-employment benefits, e.g. life insurance and access to medical care;

    6. other long-term employee benefits, e.g. long-term paid absences, jubilee or other long-service benefits, profit sharing and bonuses, and deferred remuneration;

    7. termination benefits/payments;

    8. fees, performance or other contractual bonuses;

    9. image rights payments directly or indirectly resulting from contractual agreements for the right to exploit the employees’ image or reputation for promotional, media or endorsement work in relation to football and/or non-football activities;

    10. any employer social security charges;

    11. if not otherwise included in items set out above, any other forms of consideration such as cryptocurrencies, crypto-assets, fan tokens and non-fungible tokens; and

    12. all costs incurred in respect of a relevant person, by a third party relating to appearances, sponsorship, endorsement or merchandising work, unless the licensee can prove to the satisfaction of the CFCB that the arrangement is genuine, is at fair value, and has been negotiated and entered into independent of any relationship between the sponsor/third party and the licensee.


Amortisations/impairment of relevant persons’ costs are calculated from the licensee’s annual financial statements and/or interim financial statements as defined in Annex G.


Costs of agents/intermediaries/connected parties

  1. Costs of agents/intermediaries are costs of agents/intermediaries not otherwise included in employee benefit expenses of relevant persons and amortisation/impairment of relevant persons’ costs.

  2. Costs of connected parties are all costs paid to a connected party and incurred by the licensee, any entity of the reporting perimeter or a third party in respect of a relevant person.

  3. Connected party means, in relation to a relevant person:

    1. any close member of such relevant person’s family, where close family member means:

      - a spouse, domestic partner or civil partner;

      - any other person with whom the relevant person lives as partner in an enduring family relationship;

      - children or step‐children of the relevant person or of any person falling within paragraph (i) of this definition;

      - any children or step‐children of a person falling within paragraph (i) of this definition who live with the relevant person and have not attained the age of 18;

      - siblings;

      - parents; and

      - dependents of the relevant person or of any person falling within paragraph (i) of this definition.

    2. any agent/intermediary or representative acting on behalf of the relevant person;

    3. any legal entity in relation to which a relevant person or any of the categories of person identified within paragraphs (i) and (ii) of this definition is:

      - beneficially entitled to 20% or more of the entire issued share capital of that body corporate; or

      - entitled to exercise or control the exercise of more than 20% of the voting power at any general meeting of that body corporate; and

    4. any company, trust, partnership, or other body, organisation or mechanism established or operating directly or indirectly in whole or in part for the benefit of or in respect of the relevant person or any or all of the other categories of person referred to in this definition.