In order to play in European competition, clubs have to meet the Financial Fair Play Rules (FFP), and there was news very recently that of the 237 clubs who took part in this season’s Champions League and Europa League competitions, 76 of them are being investigated.
Michel Platini – UEFA President should be FFP rules bite
If they do not comply with FFP rules the clubs will face serious financial sanctions and – if UEFA President is true to his word – disqualification from next season’s competitions.
The strange thing is the UEFA are only investigating clubs who compete this season, so clubs like Liverpool, who didn’t compete this season but will next season, will not be investigated until next year.
The way it should be is that clubs who qualify, should have to pass the FFP rules before they compete in Europe, otherwise they are disqualified and miss out on the revenues of competing in Europe – and they are also fined.
There are some English clubs who are likely to have trouble with FFP.
Have just announced losses in the last financial year of £49.8M, and they also lost £54.7M in the previous financial year – so there are concerns about whether they will qualify and meet the criteria of FFP – but it seems it will be after European competition next year – which is silly.
Have lost £149M over the last two financial years – in 2011/12 they lost £98.7M, and in 2012/13 they lost £51.6M – and they have that that dodgy £40M per year commercial deal over ten years with Etihad Airlines, which cannot possibly meet the fair value of commercial deals.
Those seem to be the two English clubs who are in danger and probably in the 76 being investigated – but other English clubs are in better shape.
Made £6.7M profit in the last financial year and £36.6M profit in the previous year – and they are in excellent shape and the best run club in England.
Lost £8.8M in the last financial year and £4.7M loss in the previous year, and they should be in decent shape, but next year could be challenging, as they will not have the£40M they usually get from the Champions League.
Lost £49.4M last year and had £1.4M profit in the previous year – and the London club have made a point of saying they are not one of the 76 clubs being investigated by UEFA.
In France it’s very likely that PSG are being investigated, if only because of their recent huge commercial deals, coming from companies in Abu Dhabi, since they were bought almost three years ago by the Qatar Investment Authority, a group of Qatar based investors.
They have increased their commercial income by around £140M in just two years, which at the very least looks very suspicious.
Newcastle are in great shape financially, having a profit of £9.9M in the last financial year and making a smaller profit in the previous year – but we cannot qualify for Europe, so there’s a catch 22.