Football contracts and transfers on the face of it seem fairly straightforward, however, there are many other intricacies that should be taken into account when considering all of the factors that are associated.
One issue that has recently been brought to light is that of the 1:1 ruling which refers to Financial Fair Play (FFP) regulations that govern player registrations. This is particularly the case for La Liga in Spain which has been particularly strict in recent seasons.
Essentially, the 1:1 ruling is whereby clubs can only spend €1 for every €1 they earn or have saved. Basically, this is La Liga’s FFP model and clubs must satisfy this before they are able to spend on new players.
When Has The Ruling Been Breached?
Most recently, Barcelona’s financial difficulties and previous over-spending caught up with them in the aftermath of Covid-19 when the inability to generate income during that period led to a severe revenue decline and debtors calling in loans that the club couldn’t repay.
It meant that the club had to offload key assets – most notably, superstar Lionel Messi and others in order to be able to fulfil their financial obligations. Even at one point, registering players looked impossible due to the club’s finances being in such a bad state.
As a result, La Liga imposed penalties and Barcelona were ultimately given a 1:4 status. This meant that the club could only spend €1 for every €4 that was generated or saved, in line with a more sustainable recruitment policy.
Reportedly, the club has just been awarded 1:1 status again, however, this still hasn’t been enough to help them secure the acquisition of long-term transfer target Nico Williams who has just signed a new deal that ‘keeps’ him with boyhood club Athletic Bilbao until 2035.
: Nico Williams signs new deal with Athletic Club until 2035.
No Barça move — he’s staying! ❌ pic.twitter.com/ewwhi8GnqD
— SportPremi (@SportPremi) July 4, 2025
The player’s release clause of €51 million was seemingly achievable for Barcelona, who now will have to pay 50 percent more as per his new contract. A move, at least this summer, does seem unlikely.
What Is The Premier League Equivalent?
While there is no exact equivalent for the Premier League, the PSR (Profit and Sustainability Rules are slightly more lenient, though probably due to the amount of money that is in the Premier League when considering television rights and sponsorships;
As such, this allows clubs to lose £105 million over a rolling three-year period – which on average is £35 million per season and in order to be compliant, any losses must be covered by the owner and/or investors.
Unlike in La Liga, the Premier League currently does not block player registrations (as has been the case with Barcelona previously), though breaches have resulted in fines and points deductions.
Both Everton and Nottingham Forest have had points deductions and fines over the last two seasons for breaching PSR.
While the 1:1 ruling appears for now at least to be confined to La Liga, it is certainly interesting how this can affect a club’s ability to operate.
