UEFA punishes Croatia for financial fair play breaches 

The Croatian Football Federation (HNS) has reached an agreement with UEFA regarding disciplinary measures imposed on HNS for issuing UEFA licenses to Osijek and Rijeka for the European season 2022/23.

UEFA’s Club Financial Control Body (CFCB) identified a violation of UEFA’s solvency requirements during its regular financial monitoring of clubs in the summer of 2022. 

This violation pertained to Osijek and Rijeka’s failure to meet financial obligations to other football clubs and employees in a timely manner. 

Both clubs subsequently entered into settlement agreements with UEFA’s Club Financial Control Body, and the details of these agreements were publicly disclosed in March 2023. These details included the possibility of suspension from European competitions.

As per the agreement reached with UEFA, HNS has had its UEFA subsidy for the licensing process reduced by €100,000. Additionally, a conditional penalty of a further €150,000 reduction in subsidy was imposed if the agreed-upon targets were not met, HNS said in a statement.  

Similar measures have been imposed on other football federations and leagues in recent years. 

It is crucial to emphasise that the assessment of financial criteria is based on the audit reports of the clubs. Decisions regarding compliance with these criteria are made by HNS’s Licensing Department and Bodies based on the same reports.

According to audit reports, confirmed by UEFA, the clubs have met all requirements, leading to the issuance of UEFA licenses. At the time of the evaluation, no information, complaints, or evidence that would necessitate additional scrutiny of the reports reached HNS’s relevant bodies.

It is noteworthy that changes and amendments to UEFA regulations occurred during 2022, specifically addressing the insufficiently defined maturity of relevant obligations. The 2022 and 2023 editions of the regulations are significantly clearer in this regard. HNS has also updated its regulations to align with UEFA rules, introducing additional financial oversight for all clubs during the licensed competition year, HNS said. 

With these additional measures and amended procedures, HNS aims to minimise such risks in the future and take all necessary steps to avoid them altogether.

“Contrary to media reports, these proceedings have had no impact on the regularity of competitions within Croatia, as they relate to licenses for UEFA competitions. It is essential to note that UEFA has allowed the clubs to participate in its European competitions. Since the clubs have already been penalised by UEFA, it would not be appropriate nor necessary for the Croatian Football Federation to impose additional sanctions for the same violation in accordance with legal practices,” HNS concluded. 

HNS has introduced a new provision in the Licensing Regulations. In the event of future disciplinary actions by UEFA against HNS for similar reasons, clubs will bear financial responsibility if they fail to submit complete and accurate financial documentation.