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Bundesliga Financial Regulations


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Can someone please explain to me, preferrably without too much economics lingo, the practical implications of the Bundesliga's strict financial regulation? For example, are clubs prohibited from operating at a loss? Is expenditure dictated strictly by revenue?

I would appreciate any relevant links, too.

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The clubs needs a licence every season and a business plan with bank guarantees. It's not forbidden to make a loss, but there are transfer restrictions for clubs in heavy debts, like Schalke or Hertha. They usually have to sell players, when they want to buy new ones.

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