Liverpool could face FFP penalty as Champions League qualification opens them up to scrutiny

Uefa guidelines stipulate that teams who qualify for Champions League or Europa League, and therefore come under microscope of FFP, must limit losses to an agreed amount.

Liverpool could be at risk of having nearly £7 million in Champions League prize money withheld as Uefa investigates whether or not the club has breached Financial Pair Play regulations.

Due to Liverpool's absence from either of last season's European cup competitions - the Champions League and Europa League - they were not required to submit acounts for the 2011-12 and 2012-13 seasons. However, having now qualified for Europe's premier club competition, they are now subject to FFP.

Uefa guidelines stipulate that the teams who qualify, and therefore come under the microscope of FFP, must limit their losses to an agreed amount. For the likes of Manchester City, Chelsea and Arsenal, who were present in last season's Champions League, that figure was £35.4m over two seasons.

Man City and French giants PSG were the two most high-profile teams who exceeded this amount and were penalised heavily.

Andrea Traverso, head of Club Licensing and Financial Fair Play at Uefa, 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."

Over the summer, Liverpool, and the other sides not involved in Uefa competition, submitted their accounts for the past two seasons and they showed significant enough losses to potentially be among clubs referred to the Club Financial Control Body (CFCB).

Uefa has not confirmed which clubs will be deemed "at risk". Last season it was 76 but, ultimately, only nine were sanctioned. And this season "at risk" clubs could have the first instalment of their Champions League prize money held back while they are investigated.

1. Projected loss for 2011/12, 12/13 and 13/14 seasons: £83m

2. Exclusions:

Youth and Community costs: £18.9m
Depreciation: £9.6m
Wage exclusion (as explained above): £50m

Total exclusions: £78.5m

3. Readjusted loss total: £4.5m

(Source: FinancialFairPlay.co.uk)

Liverpool are therefore set to pass Financial Fair Play without receiving any sanctions. Plus the additional £25m-50m Champions League revenue will help the club to comply with the FFP rules in the coming years.