New UEFA Rules End Total Anarchy In Football Transfers – Good


UEFA President Michel Platini  has said today that the European Football’s governing body and its new rules on spending will end what he calls the ‘total anarchy’ that has surrounded player transfers in the past.

Good.

Michel Platini – crazy transfers will end

Indeed, this summer’s transfer window is expected to show a drop once again in spending by English Premier League clubs – and that is despite Manchester City spending a ridiculous £126M and overpaying for their players big time.

It’s hard to think that the Eastlands club are doing themselves any real good, as all their top youngsters now are superfluous, and that at a club which had one of the very best Youth Academies in the country. These youngsters will now have to be loaned out as “big” signings come in to play for the club.

If that’s not evidence of a club losing its soul,  we don’t know what is.

Thank goodness for the UEFA and their new financial fair play rules, which are aimed at ensuring all clubs in European competition only spend what they earn – wow – what a concept that is.

The new rules are due to come into force from next season, although they will be introduced gradually to allow clubs time to align with the new rules. Indeed, Newcastle are already being financially sensible and seem to be in decent shape, even though the club still owes owner Mike Ashley too much – at around £130M.

Good job Mike doesn’t want that money back any time soon.

Last summer English Premier League clubs spent £450M on transfers, and the drop this summer is expected to be about 25%, so they’ll spend around £338M.  And last January only £30M was spent – and that was the lowest figure since the January window was introduced back in 2003.

This is what Michel Platini said today:

“For years and years we were in total anarchy but the clubs asked for the rules because they knew they could not continue.” ‘We can see already that the clubs are spending less as they look to balance their books.”

“‘This is because the first time the break-even rule will kick in is in the coming year, the 2011/2012 season.” “It’s very soon and this means that the strategy to say “I can now go and spend hundreds of millions” doesn’t work because we will see it in two years at the latest.”

“Transfers have not been as crazy as in the last few years, they are pulling up their socks and the clubs are making special efforts to comply with the rules.”

Owners of European football clubs will still be allowed to inject up to 15M euros (about £12.3M) each year into their clubs, but only for the next five years, and then 10M euros (about £8.2M)  from 2015 until 2018, but that cannot be a loan, and after that we’re not sure what will happen.

UEFA general secretary Gianni Infantino said they will monitor the progress of the new rules:

“In 2018 we will assess it and the objective is to go further down.” “It cannot be a loan however it must be a capital injection or donation.”

So it’s still true that benefactors such as Sheikh Mansour  and Roman Abramovich (and Mike Ashley?) can still pour money into their clubs, but the amounts will be restricted.

The position of  clubs with owners (usually American) carrying huge debts, like at Manchester United and Liverpool,  is unclear. These clubs pay out huge interest payments each year on the hundreds of millions of pounds they have borrowed to buy the clubs.

The Red Devils say they would be able to meet the new rules to only spend what they earn,  but Infantino confirmed the interest payments will be part of  the money spent at the clubs, as he added:

“The costs to finance the debt are included,”

Manchester City’s football administrator Brian Marwood said the club were OK with the new UEFA rules:

‘It’s a concern, it’s something that every club has got to be aware of but we are fairly comfortable in terms of where we are at and moving forward, and that element is something that not just Manchester City will face but everybody.”

The Eastlands club may be comfortable with the new rules, but surely that’s not true at Manchester United, who are paying interest on something like £730M in loans, so it’s not clear how the club can keep buying top players.

The interest payments alone must be around £110M (at 15% interest rates on £730M), and that will be taken into consideration as money spent by the club, so the Red Devils need to rack up their revenues, if they want to keep buying top players.

Comments welcome.


68 comments so far

  • GeordieToon89

    Aug 30, 2010 at 7:41 PM

    Comment #1

    I F**KING HATE MICHEL PLATINI…!!!

    had to be said sorry lads 🙂

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  • GeordieToon89

    Aug 30, 2010 at 7:45 PM

    Comment #2

    also i think its the end of man utd in the next few years, arsenal are the only team in the premier league to have made a profit or stayed in the green over the last couple of season which is suprising considering they built tht new stadium aswel

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  • Cockney Magpie

    Aug 30, 2010 at 7:49 PM

    Comment #3

    wow that is massive! thats gonna completely change everythin, man city will prob not be able to spend much in a couple of seasons! i think this is a great rule and will eventually bring the chelseas and man utds closer to the rest of the pack

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  • toonster88

    Aug 30, 2010 at 7:49 PM

    Comment #4

    stupid arabs @ city r gonna be pissed………

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  • lewman

    Aug 30, 2010 at 7:52 PM

    Comment #5

    does that mean mike ashley can personally buy any players he wants before the start of the 20011/2012 season. could man city just go and buy messi for 100 million after selling tevez, adebayour and ballotelli plus 15 million from their owner.
    i am confused

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  • Cockney Magpie

    Aug 30, 2010 at 7:53 PM

    Comment #6

    from what i can gather it means clubs can only spend what they make whether it be through shirt sales, tickets, or selling players plus a small injection from the owner

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  • toonster88

    Aug 30, 2010 at 7:55 PM

    Comment #7

    these r our upcomin matches4 sept/oct.blackpool(home-3points),everton(away-draw perhaps with the way our teams performin),stoke(home-3points),City(away-no comments),wigan(home-3points),westham(away-3points the way the hams r playin rite now)then the scums @ home(3points)…not bad

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  • GeordieDan

    Aug 30, 2010 at 7:56 PM

    Comment #8

    Great to tbh. I think Man U and a couple of others will be in major trouble if they don’t have a major re-think ASAP.

    I can see them in some deep shit…Just imagine: No Alex Ferguson and no money to spend on decent players, Giggs and Scholes retired…..Perfect eh.lol

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  • Toon1978

    Aug 30, 2010 at 7:56 PM

    Comment #9

    Good rule for NUFC because the club pulls in quite a bit of money through season tickets and merchandise sales. We are one of the best supported clubs around so it will benefit us big time. We still out do Man city with all their superstars lol.

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  • Cockney Magpie

    Aug 30, 2010 at 7:58 PM

    Comment #10

    anyone else seen Asamoah Gyan has been spotted at newcastle airport they are saying its to go to the mackems hopefully he is here for us

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  • Toon1978

    Aug 30, 2010 at 8:02 PM

    Comment #11

    Cockney Magpie

    I have heard on the 3 legends and SSN that he could be off to Sunderland.

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  • Cockney Magpie

    Aug 30, 2010 at 8:03 PM

    Comment #12

    we could do with hijacking that i reckon lol

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  • Sgt. Heagerty

    Aug 30, 2010 at 8:05 PM

    Comment #13

    this is the best thing that could happen to newcastle united lads. It couldnt have come at a better time for us. As we are rebuilding our club from the ground up on a sound financial footing already we are ahead of the game.. Also we are reinforcing our youth academy which could become a shining beacon in europe very soon as we have committed ourselves to the youth movement. Lastly, newcastle has the best supporters in the world and we shell out quid for merchandise and we pack sjp one of the biggest grounds in England week in and week out. This will even things up and break up the big 4. Man Ure and liverpool are about to do a leeds. they have too much debt to be able to cope with the new rules and still spend and bring in big players like they do now. Newcastle with our support should be able to rise up to the top 5 easy if we balance our books over the next 2 seasons and continue to invest in our academy. I am stoked about this mates i think this will benifit newcastle united big time….hwtl

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  • tjshawsey

    Aug 30, 2010 at 8:09 PM

    Comment #14

    Gyan is on the market for £15Million… Thats definately out of our price range!

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  • G

    Aug 30, 2010 at 8:12 PM

    Comment #15

    I actually think this is a good thing, look what happened with On Digital / ITV Digital over the whole clubs overspending debacle. Further restrictions on clubs spending within their means can only be good for the long term future of the game. Players wages will also need to drop once the new rules kick in, and that itself will be a good leveler. Like SH says @ post 13, at least 2 of the big 4 will be cattled under the new rules, although I think Roman Abravovic will get bored of Chelsea and start wanting his wedge back. By comparison to City / Chelsea / Manyoo and Liverpool, our debt is trivial.

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  • toon95

    Aug 30, 2010 at 8:13 PM

    Comment #16

    cockney magpie totally agree with you.

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  • Sgt. Heagerty

    Aug 30, 2010 at 8:16 PM

    Comment #17

    toon1978,

    spot on mate, this rule is perfect for us. our books will be balanced and if we live off what we make we will be in better shape then prob 17 of the 20 prem clubs, with arsenal and chelsea maybe ahead of us…

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  • gorskino10

    Aug 30, 2010 at 8:16 PM

    Comment #18

    Stupid idea, will kill many teams who need to sell high to get rid of massive talents to keep the club above waters, much like Benfica they got Di Maria for like 5 Million sold for 25 and they have done this for years if this wont be allowed they will go under. only thing FIFA/UEFA should impliment is GOAL LINE BLOODY TECHNOLOGY and a way of keeping clubs for going into Administration and a way of punishing the club not the fans when they go into it and get a massive point deduction

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  • Sgt. Heagerty

    Aug 30, 2010 at 8:18 PM

    Comment #19

    G,

    yes its good for and protects the game, but with us balancing our books and reinforcing our academy we are gonna be top 3 mate. The rule makes it to where you spend what you make and we are one of the best supported clubs in england and europe….

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  • Sgt. Heagerty

    Aug 30, 2010 at 8:20 PM

    Comment #20

    gorskino,

    who cares about benifica being a contender, this rule will prevent clubs like man city from ruining the competitive balance of football and also it will protect the game from clubs doing what portsmouth did….last but not least it will benifit the toon and make us frontrunners…

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  • Sgt. Heagerty

    Aug 30, 2010 at 8:24 PM

    Comment #21

    the idea for the rule is simple, dont live above your mean…it forces clubs to build the right way like we are now instead of saling their souls for trophy’s and questioning the competitive balance and integrity of the game like man city…no more going 700 mil in debt like lpool and man ure and getting away with it because your in the big 4 clique. It will leave all leagues and europeans comp’s completely wide open instead of being dominated by the same teams and represented by the same teams every year. couldnt be more happy about this

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  • G

    Aug 30, 2010 at 8:35 PM

    Comment #22

    I think top 3 might be a big ask Sgt H, but we should be there are thereabouts within the next 3 – 5 years although within the top 5 might be more realistic. We do have a big stadium, but looking at spending, I think Arse are the next big boys of the league. Sensible spending, great academy, and a manger that believes in value for money. If CH follows his example I will be a happy bunny indeed.

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  • shearer4pm

    Aug 30, 2010 at 8:36 PM

    Comment #23

    will this stop sheik mansour setting up something like a holding company now. and then putting say another billion into this account and city spending it as they please?because it is done before next season? or even not a holding company.
    and wont this be a restriction on a business. it may result on some clubs going bankrupt. surely this is what they want to avoid?

    im not an expert on this. so if this is all wrong to you please go easy on me lol

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  • Sgt. Heagerty

    Aug 30, 2010 at 8:42 PM

    Comment #24

    G,

    I agree with you on arsenal, best youth academy spending under control, well supported, good manager and staff. I agree they very well could be heir apparent of the prem league. But my point in saying us top 3 is strictly off in 2 seasons with this is implemented our books will be balanced. Also our academy will have had 2 more years to grow. Our academy is stocked now and with ashley reinvesting and commiting us to our academy in hopes of it equaling arsenal’s we will be in top 5 in that department. But my main reason is the toon army. With these rules a club will be succesful based upon it’s support and how well they do business off the pitch. Newcastle with its unmatched support, legendary grounds, and on a sound financial footing with a billionare english businessman genius (must be smart to make a billion, plus last year or so he looks like he has figured the football business out and is really trying to do right by toon army) a good young manager and great coaching staff. There is no reason we cant replace one of the big 4 and become card carrying members of the big 4 clique. With the right business plan newcastle is a cash cow wth the fanatical world wide support. And once we get back into europe in will only grow…hwtl

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  • Sgt. Heagerty

    Aug 30, 2010 at 8:46 PM

    Comment #25

    shearer,

    owners will only be able to inject 15 million a year beggining in 2012 and shrinking to 10 mil in 2015. This will prevent rich owners from buying trophy’s i.e. man city. Also it will prevent clubs from going bankrupt like portsmouth because they wont be able to spend more then they take in, thus forcing clubs back to a sound financial plan. Now this may force clubs like man ure and liverpool into administration because they have a pathetic 700 mil debt. Thats their fault if they go under and i think they will have deserved it if they do.

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  • Phil K

    Aug 30, 2010 at 8:46 PM

    Comment #26

    I don’t like Platini, but something has to be done about the agents and greedy footballers who are destroying football.
    One name – Michael “Ars*hole” “Greedy C*nt” Owen says it all.

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  • bakerman

    Aug 30, 2010 at 8:48 PM

    Comment #27

    toonster88
    Have you got a problem with Arabs or the Arab owners at Man City?
    Your tone in comment 4 sounds quite racist to me

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  • shearer4pm

    Aug 30, 2010 at 8:52 PM

    Comment #28

    thanks sgt h
    so next summer mancity are just going to go crazy becase they cant do what they have been doing anymore. going to make the game alot more interesting :D, although not so exciting on the transfer front :/

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  • Robby Bobson

    Aug 30, 2010 at 9:05 PM

    Comment #29

    This rule sounds pretty good…hence why man city have spent hundreds of millions now.

    However the most un-thought-through rule around is the 25 players per squad. So they introduce a rule encouragin youth development and home grown players, and yet the cap the squad size so youngsters wont be able to play. The likes of Donaldson, Ranger and Vuckic may not make it into our squad. Surely it should be 8 out of 25 developed in the country….then any youngtsers you want to bring in.

    Idiots run the game!

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  • Whumpie

    Aug 30, 2010 at 9:07 PM

    Comment #30

    Nobody should be surprised by this – Platini warned everyone a couple of years back that the rules would be coming in.

    Damn right too; it’s just got daft, and a full trophy room is more down to sugar daddies and the ability to scrounge huge loans than anything to do with footie.

    One way or another, you do have to look at Ashley’s business model and recognise the sense in it. We’re already pretty much living within our means, and yet we can land players like Ben Arfa.

    The future’s bright, and definitely has shades of black and white about it… 🙂

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  • noir9

    Aug 30, 2010 at 9:09 PM

    Comment #31

    It does sort of explain the citeh plan, mega investment which will (they hope) lead to a quick succes which will buy global support & biggar income which gives them more to spend. Problem is that if they don’t dramatically increase their income they’re screwed.

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  • a.l 9

    Aug 30, 2010 at 9:10 PM

    Comment #32

    if only this had been brought in sooner!

    We are looking good for it though, so hats off to Ashley (and I was one of his biggest critics to be fair)

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  • davybtoon

    Aug 30, 2010 at 9:13 PM

    Comment #33

    Bobby robson ya wrong the 25man sqaud is jus players 21 n over, anyone under 21 can play at anytime even though not in the sqaud

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  • Robby Bobson

    Aug 30, 2010 at 9:14 PM

    Comment #34

    Really? Oh OK they did think it through and im the idiot.

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  • baro

    Aug 30, 2010 at 9:16 PM

    Comment #35

    Finally they set a rule on big money spending. Its our time to be the best Premier League team in the world, Manchester and Chelseki’s you going down in the next 3 years.

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  • noir9

    Aug 30, 2010 at 9:19 PM

    Comment #36

    bakerman @ 27, how about….the quicker their bloody oil runs out the better for everyone….not racist just a point of view.

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  • safferman

    Aug 30, 2010 at 9:22 PM

    Comment #37

    So whats the story with wages then? Buy Messi for 5 mil and then pay him 10 mil a week on wages!??

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  • nightfa11

    Aug 30, 2010 at 9:23 PM

    Comment #38

    this will force man city sheik to buy 1 billion tevez’s shirts 😀

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  • Fostino

    Aug 30, 2010 at 9:29 PM

    Comment #39

    taylor part exchange for keane could be an option??

    id like to see both at our club

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  • nightfa11

    Aug 30, 2010 at 9:40 PM

    Comment #40

    we dont need any more players.. this TW has been maybe the best one ever..we’ll see.. but our squad is:

    gk: harper, krull
    rb: perch, r.taylor
    cb: colo, wili, sol, s.taylor
    lp: enrique, kadar
    rw: ben arfa, gosling
    lw: jonas, routlidge
    cm: tiote, barton, guthrie, nolan, smith, vuckic
    st: carroll, shola, loven, xisco, best, ranger

    great squad – so much potential.

    if anything i wouldnt mind 1 cm ( yes smith..sorry but he’s been aweful – had a few good games but overall..no comment) & 2 strikers (shola & best/xisco) leave.

    2 players for every position & a youngster or 2 – that’s all we need.

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