Premier League Clubs Trying To Stop Crazy Overspending


It seems that Michel Platini’s statements of a few days ago are having an impact on the various leagues in Europe, and the UEFA President has warned clubs, especially the top clubs who are currently the most successful, that they need to balance their books or they will not be allowed to compete in Europe.

Michel Platini – Financial Fair Play Rules important

As a reminder,  this is exactly what Michel Platini said at the beginning of September, after he had given 27 European clubs a deadline to put their financial houses in order:

“They were told to sort their finances out before June 30th. Then they had until July 15th to discuss any problems.” “The next check on September 30th will be vital. For clubs who can’t follow the rules of the Financial Fair Play system, it is over and out of Europe.” “We are also protecting clubs who have sold players and struggle to receive payment. A number of clubs have had to chase their money for years.”

News that the Premier League clubs will meet today to discuss putting their own financial houses in order, and impose some spending limits on clubs in the world’s top football league.

Derek LLambias will be there representing Newcastle United, who are in decent shape financially, having lost only £3.9M in the last financial year 2010-2011, for which which records have been disclosed.

That compares with losses of £197M for Manchester City, £68M for Chelsea and £49M for Liverpool, and it’s becoming important for these clubs to get a grip, and start spending within their means, and within the revenues they generate each year.

So the two clubs who are losing the most in England, are the current European Champions and the current Premier League Champions and going into enormous debt seems to have paid dividends for them – at least in winning trophies.

But we know other clubs have gone under by continuing to spend money they just don’t have – Glasgow Rangers being the latest example north of the border.

David Whelan of Wigan has said that Manchester Unite pushed for the meeting today and have an initial proposal:

“The proposal came from Manchester United – I think City have shaken them up a little bit. The Premier League is so big and powerful, there is so much money around and the clubs try and chase it, something has to be done”.

Manchester United’s CEO David Gill had this to say:

“We’ve got financial regulations in the league below us in the Championship and in the competition above us, the Champions League, so we need to do it”.

It’s been pure financial suicide  for some clubs in the last decade or so, and clubs like Portsmouth, Plymouth, Southampton and others who have gone bankrupt and have had to come back into financial reality.

We remember on the last day of August in 2009, when Portsmouth were making all the news in signing players, so while it looks good at the time, when you don’t have the money, things start to get a little difficult,  and the piper has to be paid at some point.

And even last Friday Sky Sports were going on as though it was better the more money big clubs spent in the window – Sky Sports sensationalism – but simply crazy.

It’s a good move by the Premier League clubs to impose their own spending limits, but we wonder if clubs like Chelsea, Manchester City and QPR, as just three examples,  will agree to the new proposals – because nothing has stopped them in the last few years of some wild overspending.

Next May those clubs who are nowhere near balancing their books should be banned from European competition – and maybe Newcastle can make the Champions League?

Comments welcome.

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23 comments so far

  • Dannyo

    Sep 6, 2012 at 9:57 AM

    Comment #1

    It’s about damn time.

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  • toonarmydownsouth

    Sep 6, 2012 at 9:58 AM

    Comment #2

    Ah ian toon the blog hypocrite
    You recall cery wrongly when did i tell you to fcuk off?
    And are you sure because you managed to confuse an entire days worth of posts by TDS with me and criticised them to point that you and friends *cough cough manikins down the pub were saying his posts were so laughably depressing and that his “deceptivly defensive” post made him the worst fan ever, the worst part is you never even apologised!

    I havent changed my opinion on nout buddy and the only time you seemed to of had a disagreement with me is when i said you had double standars about what bullying is turns out i couldnt have been more right!
    Let it go and try to apologise to ToonDownSouth while your at it

    Also instrumental in jimmy leaving the blog? Your a tool i was having a discussion with him about vuckic where we were both agreeing that he needed to start living up to his hype this season as injuries and lack of loans seem to have stunted his development at which point beattie and ruddy had an arguement with him over various different issues fcuk all to do with me
    And turf warrior? What are we in playground?

    And as for younger posters i have no idea how old you are nor do i care, and im hardly an older poster at 27

    So once again take some of your own advice, apologise to TDS for mocking his comments simply because you thought i posted them (shows your maturity there!) and get over yourself

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  • wynsleap

    Sep 6, 2012 at 10:00 AM

    Comment #3

    While we’re on the subject of finance in football …..again has anyone seen the Reuters report on Ashley having his Sports Direct bonus turned down.
    It goes on to say, “He does not take a salary and generates significant free advertising for the company through his ownership of English Premier League soccer club Newcastle United”.
    For all those fans forever saying how do we know he doesn’t pay for his advertising tat at the club, maybe this has answered that?

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  • jimmymagpie

    Sep 6, 2012 at 10:11 AM

    Comment #4

    Wyns – well spotted mate, but some of us have been trying to tell the muppets for a long time now. Ed, if Llambarse attends the meeting, it will be one of the few he has attended, as he normally sends the finance director. The wonderful transfer policy is really biting them on the arse now, isn’t it? They play Col only 90% fit, because they were desperate to get him back, and now he’s probably finished up with a damned sight worse injury. Serves the bug-ers right!

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  • numba9

    Sep 6, 2012 at 10:14 AM

    Comment #5

    Stupid fixtures coming up and injuries are likely we seem to have missed the boat sning onno defenders this summer what does Ashley think of it i wonder ?

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  • Munster Mag

    Sep 6, 2012 at 10:16 AM

    Comment #6

    Jimmy, you wont listen to me mate will you? Cupid and his mini accountants will be on your case soon, beating you with their ledgers!! Run while you can!

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  • Ibizatoon - Back by popular demand

    Sep 6, 2012 at 10:17 AM

    Comment #7

    Muppet here. I thought we didn’t like name calling on here? Silly me, I really am a muppet it seems.

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  • Small World

    Sep 6, 2012 at 10:17 AM

    Comment #8

    @wynsleap

    You’re right about that statement. It is clear that Sports Direct do not currently pay for advertising at SJP.

    Interestingly also, is the fact that Ashley isn’t taking money out of either of his businesses; a point a lot of folks conveniently overlook. He always said he would keep them a separate business entities, and that is the case – although it is clear SD are clearly benefiting from joint ownership.

    It’s clear his approach is to fund the club from soft loans and have it paying it’s own way ASAP, and we’re nearly there.

    Every time folks asking him to spend another £20m or so, it is not yet from club coffers as it isn’t yet making money – it will have to be in the form of another loan. He appears not to want to do that, hence the straight jacket on spending.

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  • Munster Mag

    Sep 6, 2012 at 10:18 AM

    Comment #9

    Wyn, dont worry mate, in addition we’ll have a new stadium sponsor soon. Honest Guv….Sony are coming . No joking, its true….:)

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  • Cool Hand Luke

    Sep 6, 2012 at 10:19 AM

    Comment #10

    TADS didn’t you post that yesterday in another thread? Its a little negative to be repeatedly posting.

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  • Small World

    Sep 6, 2012 at 10:22 AM

    Comment #11

    @jimmymagpie

    No doubt, you’re right. It’s where penny pinching gets you; but it seems to be the game MA wants to play.

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  • toonarmydownsouth

    Sep 6, 2012 at 10:22 AM

    Comment #12

    Cool Hand Luke
    Yes i did just trying to make a point to the bloke
    No negativity here mate!

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  • toonarmydownsouth

    Sep 6, 2012 at 10:24 AM

    Comment #13

    Turns out jimmy hasnt left after all!
    Hows you jimmy?

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  • jimmymagpie

    Sep 6, 2012 at 10:27 AM

    Comment #14

    Munster – thanks for the warning. Ibiza – come on mate, you’re a sensible bloke, you didn’t seriously believe that Ashley was paying for the advertising at the ground, or for the re-naming?I was at the ground yesterday, and went in to the club store, having heard that hardly anybody goes in apart from match days. True enough, it was practically empty, and easy to see why – apart from the puma gear, it’s full of cheap Sports Direct tat, at inflated club shop prices of course.

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  • jimmymagpie

    Sep 6, 2012 at 10:34 AM

    Comment #15

    TDS – been back for a few days mate.Kept a low profile the last 2 weeks of the window, after I was abused as usual for telling everyone that Pardew had been told to make do with what he had after the Anita signing, which was proved correct, AGAIN! I don’t tell lies, and I only pass on what I am told from very decent people. I’m not too bad, but I must admit I struggled to get to the Villa match after my treatment last week, and in hindsight, probably shouldn’t have gone. Still, it was worth it just to see Ben Arfa’s goal!

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  • Ibizatoon - Back by popular demand

    Sep 6, 2012 at 10:38 AM

    Comment #16

    Jimmy….I have always said that I have no idea, but doubted payments were being made to the club. I also suggested perhaps in the boards mind this was seen as interest payments on the loans, but if this was the case they should man up and say so. That I could accept to be honest, although It wouldn’t thrill me.

    My point earlier on the thread, is that I find it interesting that I have been branded a bully in the past and accused of name calling and such, yet people seem to have no problem doing it themselves when they feel they have been proved right. Seems like double standards from where I’m sitting. That’s all.

    I would also like to point out, that the advertising and transfers are just two aspects in which I have opinions on about the club / board and don’t take away from the other good things I believe they are doing.

    But I’m glad you’re all pleased you feel you have been proven right. Must be one mighty good day for you all.

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  • jesperfuglsang

    Sep 6, 2012 at 11:06 AM

    Comment #17

    Something I do find interesting – please feel free to correct me if I am wrong – in that MA wants us to live up to the FFP regulations and be sustainable and transfers aside, we almost managed that last year and this year. What we are failing at is generating revenues – even Tottenham is miles ahed of us (how come is that by the way?) If MA’s SD had paid for the advertising af SJP then would be making a profit, meaning we would be breaking even.

    I do wonder why he has decided not to pay up 🙂 …I don’t know all the details anyway, but I guess one of the reasons why we didn’t spend more this transfer window is don’t to the fact he wants to break even and then it is a bit funny he doesn’t pay up I think 🙂

    Okay that was my thought of the day…i am all knackered now 😉 lol

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  • jesperfuglsang

    Sep 6, 2012 at 11:09 AM

    Comment #18

    * sorry about the type-o’s, but it is really difficult to write from a tablet without spell check 🙁

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  • Cool Hand Luke

    Sep 6, 2012 at 11:18 AM

    Comment #19

    Haha jesper, its pretty easy to see who is using a mobile or tablet. I find typos add a certain je ne cais qoi to ones posts anyhow.

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  • Cool Hand Luke

    Sep 6, 2012 at 11:23 AM

    Comment #20

    I think that last sentence is what Mike Ashley is banking on. If the regulations are upheld then we will have a huge advantage over the other clubs. If it has any teeth that is and these sweetheart sponsorship deals like man city have in place are regulated.

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  • dave 1961

    Sep 6, 2012 at 12:01 PM

    Comment #21

    the only way Michel Platini’s going to help us is if he installs himself at the bog’s in st James park as a hand drier i have read the regulations in great detail and its so easy to avoid any sanctions because the words they use are “could” be blocked from competing, at no time has the term “will” been used, so expect any club being banned to be the minnows. sports direct did not even pay for the sports direct signs at a cost of £14,000. and further more Ashley has taken out £1m of his loan back, but it is his money and it was probably only for accounting reasons, so the club could show a loss and save on tax, next accounts i will get a copy and post them (if i have the time). also many of our accountants on hear seem unaware that businesses on a regular basis wright down the value of its assets this then shows a loss, like will be done with 11 of the 13 players that left.

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  • toonincheek

    Sep 6, 2012 at 1:13 PM

    Comment #22

    jesper –

    the accounts would look better if MA ‘paid’ for advertising
    BUT
    a whole lot worse if he charged interest on his loan.

    Your observation seems somewhat blinkered ? ?

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  • lesh

    Sep 6, 2012 at 1:55 PM

    Comment #23

    Of course the big spenders’ll agree now that they’ve spent their billions or near billions on building quality squads!

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