Euroleague Implements New Financial Fair Play Rules: Minimum Budget, Salary Cap, and Luxury Tax

The Euroleague is entering a new era starting from the next competitive season. In an effort to control team expenses and reduce inequalities caused by budget differences, the organizing body has announced new regulations for Financial Fair Play. The new era of the Euroleague will include a minimum budget, salary cap, and luxury tax modeled after the NBA standards for teams with high player contracts. These measures aim to enhance financial sustainability, promote competitive balance, prevent improper practices, and increase transparency among teams. The 2025-26 season marks the initial phase of a progressive implementation process, culminating in full enforcement by the 2027-28 season. The minimum budget required for participation includes €5.8 million for Type A contract teams, €4.7 million for wildcard participants, and €4 million for Eurocup qualifiers. Details on the salary cap enforcement starting in the 2027-28 period outline tiered structures for players included in a team’s roster. Revenue averages as per the Financial Fair Play rules set at €19.5 million for Type A contract teams. Luxury tax penalties apply progressively: 50% for exceeding the Basic Remuneration Level (BRL) by 0-10%, 75% for exceeding it by 10-30%, and 100% for exceeding it by 30-50%. This framework aims to ensure equal pay levels based on collective revenues, maintaining financial balance while harmonizing the impact of varying tax models across the league.