K.1.5 Adjustment of employee benefit expenses in respect of relevant persons - Club Licensing

UEFA Club Licensing and Financial Sustainability Regulations

Content Type
Technical Regulations
Category
Specific Regulations
Subject
Club Licensing
Edition
2024
ft:locale
en-GB
Enforcement Date
1 June 2024
K.1.5.1

A licensee may, in specific circumstances as described below, adjust the squad cost numerator downwards. Such adjustment is possible if the licensee’s tax and social security multiplier exceeds the reference tax and social security multiplier.

K.1.5.2

A licensee’s tax and social security multiplier is the amount by which the net employee benefit expenses of relevant persons are multiplied to determine the total employee benefit expenses.

K.1.5.3

The reference tax and social security multiplier is calculated by UEFA every three years. It is the average of the tax and social security multipliers of the top five UEFA member associations in the club competitions access list at the time of the calculation. The reference tax and social security multiplier valid for the period 2024-2026 is 2.16.

K.1.5.4

The amount of the adjustment is equal to the difference between:

  1. the licensee’s employee benefits expenses of all relevant persons; and

  2. the net employee benefit expenses paid or payable by the licensee to all relevant persons multiplied by the reference tax and social security multiplier calculated by UEFA.

K.1.5.5

If a licensee wishes to adjust its squad cost numerator in respect of tax and social security charges, the licensee must prepare and submit a tax and social security table by the deadline and in the form communicated by UEFA. As a minimum, it must disclose for each relevant person:

  1. net employee benefit expenses, i.e. net of any personal income tax, employee and employer social security charges;

  2. any personal income tax;

  3. any employee social security charges;

  4. any employer social security charges.

K.1.5.6

The tax and social security table must be reconciled with the annual and interim financial statements and assessed by the auditors.