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?
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