Liverpool could have Champions League prize money withheld as Uefa investigate possible Financial Fair Play breach

Liverpool were not required to submit their accounts last season but their return to Europe could see them facing a sanction for their spending

Liverpool manager Brendan Rodgers (Getty Images)

Liverpool are under investigation by Uefa over whether or not they have breached Financial Fair Play regulations, meaning that they could have their Champions League prize money withheld as a result.

The Reds returned to Europe last week after four years away from the Champions League, and emerged with a 2-1 victory over Ludogorets thanks to late goals from Mario Balotelli and Steven Gerrard.

Having missed out last season on both the Champions League and Europa League, Liverpool were not required to comply with Uefa’s FFP ruling, nor submit their account details for the 2011-12 and 2012-13 seasons.

But last season’s second-place finish in the Premier League saw Brendan Rodgers’ side return to Europe’s elite competition, and as a result they must now meet Uefa’s restrictions or face a sanction. Under the current Uefa guidelines, clubs must restrict their losses to an agreed amount with the governing body. Manchester City, Chelsea and Arsenal, who all join Liverpool in the Champions League group stage this season, agreed a maximum loss of £35.4m over two seasons – something that City subsequently breached along with Paris St-Germain and incurred a heavy fine as a result.

The investigation has not been triggered after the club raised suspicion though, as Uefa’s head of Club Licensing and Financial Fair Play confirmed it is an automatic action for any club that reaches the Champions League or Europa League.

Andrea Traverso told The Times: "As soon as a club qualifies [for a Uefa competition], it enters the scope of Financial Fair Play. So they have to immediately submit all the information to Uefa."

Mario Balotelli celebrates his first Liverpool goal in the win over Ludogorets (GETTY IMAGES)

The problem for Liverpool comes in that they posted their accounts for the past two seasons and were flagged up as having lost enough money that they could be in breach of ruling, meaning they would be referred to the Club Financial Control Body (CFCB).

Last season, Uefa confirmed that 76 clubs were deemed “at risk” of a sanction, but only nine clubs were eventually fined and hit with squad-size limits for the coming season. This season, clubs in breach of FFP could see their prize money frozen while the investigation takes place.