The EuroLeague has revamped its Financial Fair Play (FFP) regulations by introducing the Competitive Balance Standards (CBS), a new measure similar to the NBA’s luxury tax. This system, approved by the ECA General Assembly, aims to promote competitive balance and financial sustainability by enforcing financial penalties on teams that overspend on player salaries.
The CBS establishes three salary thresholds: the Low Remuneration Level (32%), the Base Remuneration Level (40%), and the High Remuneration Level (60%). These percentages are based on the average revenues generated by EuroLeague clubs. Teams exceeding these limits must pay a Competitive Balance Compensation (CBC), which will then be redistributed to more fiscally responsible clubs.
The system is designed to ensure fair competition, with specific exceptions allowed for certain players to attract and retain top talent. Full implementation of the CBS is scheduled for the 2027-28 season, following a transition period that begins in 2024-25.
This marks a significant step in EuroLeague’s evolution, aligning financial practices with the need for balanced and sustainable competition across Europe.
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