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Liverpool could face UEFA fines

Last spring, UEFA's first season of Financial Fair Play resulted in nine clubs - most notably Manchester City, Paris Saint-Germain and Zenit St Petersburg - reaching settlements with the Club Financial Control Body (CFCB) after being found in breach of the break-even requirement (no more than €45 million (£35.3m) in losses during the 2011-12 and 2012-13 seasons.

Now, the screws are turning on those clubs who were not monitored last spring for the simple reason that they were not involved in UEFA competitions. Monaco, Roma, Liverpool and Inter Milan are among the clubs currently being assessed for that first monitoring period. And, according to UEFA, if they are deemed to be "at risk" of violating the FFP parameters, they could see as much as €8.7m (£6.8m) - the payment for qualifying to the group stage of the Champions' League, due to be paid out next month - held back, pending a full inquiry.

Andrea Traverso, head of Club Licensing and Financial Fair Play at UEFA, said it was the equivalent step to what occurred last season, when 76 clubs were referred to the CFCB and asked to submit additional information. It doesn't mean they will definitely be punished - indeed, only nine clubs ultimately were sanctioned - but it does mean they will effectively have to go through the same process other clubs went through last season. And, Traverso says, it could mean that in some cases that first instalment of prize money could be held back, pending the outcome of the investigation.

UEFA won't confirm which clubs will be referred to the CFCB, but it's entirely possible that big spenders like Monaco and Liverpool, who racked up around €120 million euros (£94.1m) in losses between 2011 and 2013, will be among them. Note that losses of that magnitude don't automatically mean a club is in breach, because UEFA's FFP parameters don't consider certain types of "virtuous" spending - like investment in youth or infrastructure - as losses. And, when arguing their case, clubs can also include future revenue projections to show they are trending in the right direction.

The twist, though, is that UEFA reserves the right to withhold prize money pending the outcome of its investigation.

John W Henry and Liverpool could find themselves in a financial hole if UEFA determine they are simply 'at risk' of violating Financial Fair Play regulations © Getty Images

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"It's a preventative measure," Traverso says, adding that it could be applied in certain cases. If the additional information provided - including accounts for 2013-14 and estimated revenue in future years - enables them to meet FFP parameters, then the prize money will be released.

Where it could be a blow for a club, however, is in terms of cash-flow. Clubs who qualify for the Champions League group stage know they are getting an €8m (£6.2m)-plus cheque in October. If they've already allocated that money and have bills to pay, they could suffer a hit, as they'll need to find the cash elsewhere.

In a sense, it also levels the playing field somewhat. Clubs like PSG and Manchester City are competing under FFP sanctions (reduced squad sizes, limited net transfer spend) this season, whereas teams who are new to European football this year would otherwise have been able to compete with no sanction or limitation at all.

Of course, in a few months' time, all clubs involved in European competitions will need to go through the process all over again as they are assessed on the second monitoring period. The limit will still be €45m (£35.3m), but this time the losses will be spread over three seasons - 2011-12, 2012-13 and 2014 - making it even tougher on loss-making clubs.

This article originally appeared on ESPN FC

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