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UEFA Financial Rules

PostPosted: Fri May 28, 2010 12:54 pm
by devilsadvocate
UEFA have approved new financial regulations designed to protect clubs from going into administration:

http://www.skysports.com/story/0,19528,11661_6175730,00.html

Uefa have approved plans to force clubs in European competition to only spend what they earn.

The financial fair play rules will require clubs to break even over a rolling three-year period if they want to play in the Champions League or Europa League, with Uefa president Michel Platini insisting he wants to 'protect clubs not punish them'.

Clubs will also be assessed on a risk basis, taking into account 'debts and salary levels'.

Platini, speaking after Uefa's executive committee had approved the rules at a meeting in Nyon, Switzerland, said: "We have worked on the financial fair play concept hand-in-hand with the clubs, as our intention is not to punish them, but to protect them.

"We have an agreement with the clubs. The philosophy is that you cannot spend more money than you generate.

"This approval today is the start of an important journey for European football's club finances as we begin to put stability and economic common sense back into football. I thank all the stakeholders who have supported this along the way."

Test
There will be some leeway granted for the six years after 2012 but some Premier League clubs, notably Manchester City, Chelsea and Aston Villa could still fall foul of the rule unless they change their spending habits.

Manchester United have carried out a 'dummy test' and believe they would pass the rules despite the handicap of paying out £45million to service their debts every year.

Arsenal and Tottenham would pass the test comfortably, while Liverpool, Celtic and Rangers would probably do so too.

A United spokesman said: "We support the financial fair play measures. We are confident that we pass them and that we will continue to do so."

If clubs breach the rules then they will not be granted a Uefa club licence to take part in European competitions.

The rules will also limit the amount of cash 'sugar daddies' will be able to pour into the clubs to fund transfers and high wages, though they will be allowed to finance capital projects such as stadiums and academies.

Attempts to bypass the rules by owners handing out huge sponsorship contracts to their clubs from other companies they own will also be checked by an independent watchdog panel appointed by Uefa to ensure they are not paying above the market rate.


Cautious welcome
The FA and Premier League - who will be the bodies that jointly provide the Uefa licences to English clubs - have given the new rules a cautious welcome.

A joint statement from the organisations read: "The FA and the Premier League are fully supportive of the principle of sustainability and of football clubs living within their means.

"The vast majority of what has been agreed by UEFA is in line with current domestic regulations and English football will respect any rules put in place for clubs competing in Europe.

"We recognise the difficult task undertaken by UEFA in this process and we have asked that certain issues be monitored so as to ensure these rules do not create unintended consequences such as preventing smaller clubs from having the opportunity to invest the resources required to compete at a higher level."


My question with someone like Chavski or Man Citeh is, could Roman or the Citeh owner call their investments into the club 'sponsorship revenue' and get around the rules?

I guess if they did that, they could never recoup that money as it isn't a loan, but Roman must be realising now that his cash is spent that he aint getting it back!

Re: UEFA Financial Rules

PostPosted: Sat May 29, 2010 2:58 am
by johntheclaret
Platini is deperate for France to win something at club lelve and has devised a plan that will keep out Man U, Chavski, Arsenal, Real, Barca, Inter........................et all

Slightly different situation between Chavski and City. I believe that the City owners just paid off and then wrote off the debt. roman has been pumping money into Chelsea as interest free loan notes, that technically would have to be re-paid.

Of course he has the financial clout to write these off and I am sure he would if it meant Chelsea being excluded from the CL

Liverpool, Utd and Arsenal on the other hand don't have that luxury. Burnley are debt free btw, so 2012 will see City and the Clarets as the only qualifiers based on debt. Woohoo.

Platini is an idiot btw, and is slowly but surely killing the game in Europe. I don't disagree with the idea of clubs not being in debt, but his motivation is twisted. He has always hated the English, (unlike the rest of Europe who think we are great :roll: )

Re: UEFA Financial Rules

PostPosted: Sat May 29, 2010 9:35 am
by devilsadvocate
What do you think the chances are of a breakaway comp jtc?

Man u, Liverpool, real, inter, ac Milan, barca etc.

If these boys all got together for their own little Europe comp, the 2nd tier would want a piece of the pie too.

Re: UEFA Financial Rules

PostPosted: Tue Jun 01, 2010 5:56 pm
by johntheclaret
I think that is coming as sure as eggs is eggs da
I wouldnt be suprised to see a European supaleague within 5 years
The big boys will be more desperate than ever for $$$ and a supa league will be the way forward
Maybe Chelsea, man u, arsenal from epl, rangers and Celtic would want a slice too. It won't be long before someone like Chelsea approaches Barca, Real and maybe Inter and the whole thing will snowball from there

The others out in the cold will want to get a 2nd tier up and running but I just can't see that happening for a while and by that time the money long since be gone

It would be a killer for the rest of the EPL and will completely **** up the lower leagues IMO

Re: UEFA Financial Rules

PostPosted: Tue Jun 01, 2010 6:56 pm
by devilsadvocate
The EPL will struggle without that lot.

And you're right, the lower leagues would be properly stuffed. Without the huge dividends from EPL clubs that currently filter down through the leagues, a LOT of clubs would find themselves up the creek.

It could be a good thing long term, as fans will still support their clubs. And players at the lower level may actually play more for the love of the game and their club rather than pounds and pence.

Actually, nope, I'm dreaming there.