Debt-ridden clubs face axe

Uefa initiative to get clubs to only spend what they earn by 2012

By Richard Bailey   Last updated: 22nd January 2010   Subscribe to RSS Feed

Debt-ridden clubs face axe

Infantino: Radical changes

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Uefa general secretary Gianni Infantino insists that Europe's top clubs could be thrown out of the Champions League if they have considerable debt.

European football's governing body president Michel Platini's 'financial fair play' initiative revolves around clubs only spending what they earn through football revenue.

Uefa have compiled a study, with the full results set to be published next month, which states that half of Europe's professional clubs are running at a loss while 20 per cent are recording 'huge' deficits.

From 2012-13 clubs will have to break even - spending only what they earn - if they want to play in the Champions League or Europa League. This would make it harder for clubs like Chelsea and Manchester City as both rely on their owners to pay players' wages and bring in new talent.

Manchester United would also struggle with huge debts totalling more than £700million, as the new rules state that clubs can have debt but only if it is affordable. In fact the majority of the Premier League would fail to meet the new criteria needed to compete in Europe with 14 of the 20 top flight clubs making a loss in 2008.

Encouragement

"What we are doing, with the support of all the stakeholders in the game including the major professional clubs, is to try and improve the long-term stability of the European club football by encouraging clubs to live within the revenues that they generate," Infantino told the Daily Telegraph.

"We are concerned, and many of the clubs and owners are concerned about the sustainability of the game.

"We survey more than 650 clubs all over Europe, and found that 50 per cent of those clubs are making losses every year, and 20 per cent of them are making huge losses, spending 120 per cent of their revenue every year."

Infantino pinpointed the major reason for spiralling debts was the increasing transfer fees and mammoth wages clubs were prepared to pay.

"Around one third of the clubs are spending 70 per cent or more of their revenues on wages," he added.

"Revenues across European football grew by 10 per cent last year, but the salaries of the players and coaches have gone up by around 18 per cent.

Inflation

"It is clear that if we continue like this it will end up with a spiral of inflation, so we need to bring a more rational and reasonable approach to this crazy game."

Premier League chief executive Richard Scudamore has voiced his opposition to Uefa's policy by declaring it will only favour the big clubs, but Infantino disagrees.

"Our intention is not to make all clubs equal with the same money to spend," he highlighted.

"What we see is that the rich owners already go to the big clubs because they make more money.

"We want a healthier environment which will allow smaller clubs to invest in their infrastructure and be able to compete with the bigger clubs, knowing that they can only spend what they earn."

Comments (140)

Peter Grant (Liverpool fan) says...

The debts are obscene at a lot of clubs, but what should actually be done is to make a rule instead that you cant buy a football club unless you can actually afford to buy it, not take out a huge mortgage on it and then expect the club to cover the cost of the mortgage, at least this would of stopped the chumps that have bought both LFC and Man Utd, this is the only reason clubs like these have debts, its not because they have gone out and spent more than they can afford to buy players or pay obscene wages that they cant afford to pay. But I do believe players wages are obscene and the players themselves have to start to realise they cant keep on being payed that amount. How about having contracts based more on final positions at end of season and whether club is in europe etc at end of season, at least you wil then know players will bust a gut to get results.

Posted 16:07 22nd January 2010

Phil Kerry (Manchester United fan) says...

United buy trophies ?? What aboutall the trophies we won with the kids that Hansen said wouldn't win anything ??

Posted 16:07 22nd January 2010

John Clarke (Chelsea fan) says...

Same old rubbish being spouted again. Same fans of the same clubs spewing their jealous bile. If their club had a billionaire owner and could buy players, do you think they would be against it. Of course not. As for UEFA, they could not afford to ban such clubs. The legality would be challenged in court and they would lose. Money does and always will be a big influence in any sport or walk of life. Get used to it.

Posted 16:02 22nd January 2010

Robert Deery (Manchester United fan) says...

If this does happen no one will watch the champions league. Its already boring as hell untill the knockout stages. man utd is football without them no one would watch it.

Posted 16:02 22nd January 2010

Jon E (Manchester United fan) says...

The only way you will cut debt in football is to cap wages across Europe. Top earners should be on £60,000, including bonuses and no more. That way clubs will have more of their profit to reduce debt. You will see true player loyalty if the wages are the same across the board. Also cap transfer, top players £15mil. More of the money will go back into club/player development and so on. Only way forward for football.

Posted 15:54 22nd January 2010

Arsenal Station (Arsenal fan) says...

Of course, there will be loopholes in the regulations that will let Madrid sneaky by. This is not meant to kill the smaller clubs, it is meant to kill the richer English clubs. A club like Arsenal will always make more money than, say, Stoke. But what this is meant to do is to get smaller teams to spend more money on improving the club and its infrastructure rather than just throwing money down the drain on wages. They will let club's carry debt that take it on to improve the club, i.e. build or improve their stadium, etc... Hence, the more money you bring in, the more you can spend. Abramovich will be forced to write off his "loans" to Chelsea in much the same way that City's owners just did, if he wants Chelsea to be in the CL. Chelsea will also be forced to leave Stamford Bridge as soon as possible, because the stadium is too old and small to generate enough revenue, just like Highbury. Same goes for Liverpool. Overall, I think it's the right thing to do for football (and that is a first for UEFA in a long time). More clubs will follow in the direction of Portsmouth if something isn't done. If a club needs to take out a loan to buy a player or to pay his wages, then you have trouble. That kind of business model is absolutely unsustainable.

Posted 15:44 22nd January 2010

Edwin Kiama says...

This Platini guy should stick to football and leave business to those with knowhow. Clubs are businesses, and they are in debt because the banks are willing to lend them money based on their past success and future potential. If small clubs cannot attract loans to the size offered to the big ones then they should fold! Manure, Liverpool, Barca, Real and many other so called big indebted clubs took more than a century to get where they are and they have a future that lenders can bank on. Why doesn't UEFA convert itself to a bank and lend money to the small clubs to ensure equity? Hogwash!

Posted 15:43 22nd January 2010

Paul Manning (Manchester City fan) says...

To all the united fans out there who cant get it into their thick heads ..Man City Owe NOTHING!! ...debt free..unlike united , chelsea and liverpool.... But something needs to be done about platini and blatter trying to demonise the english sides..without utd chelsea arsenal and liverpool in the champions league over the past few years the competition would have been a joke..english football has dominated and made that competition what it is. If Platini doesnt like it tough..hard pressed to think of any french team that would live with our top 4...apart from lyon...oops sorry liverpool! Why not start our own FA World Champions League...without free tickets to platini ,blatter and the rest of the hangers on..! Paul MCFC

Posted 15:39 22nd January 2010

David Goodwin (Arsenal fan) says...

I dont think this is such a bad idea. Clubs would no longer be able to pay outragous salaries to players who in my opinion do not deserve them. In the last "x" years players salaries have continued to spiral out of control and who can honestly say they deserve £170k a week as is rumoured for a few of the players in the premiership. Players will be forced to take a reality check and get paid a very good but far more reasonable salary. For those who think that it will hamper the "non big" clubs they will be the ones who will be able to spend over their mean in order to break into the big 4. So the likes of Stoke or Birmingham can spend big to build but then act resposibly once they have made them selves a "big club". Everyone moans how the premiership is non competitive now surely this will only help.

Posted 15:37 22nd January 2010

Just Think (Colchester United fan) says...

At last, somebody who thinks what the world is coming to!! THE Game is being controlled by Capitalists!! Their aim is to make as much money as they can from YOU,. the fans!! Think.. what is more important .. the ambulance worker, policeman, or the firefighter, that saves your life or, that fella that dribbles a ball around the park for 90 mins a week!! Their rewards for their efforts are what ?????? ..... at the best 100 to 1 for the good dribbler!! Some managers are not any better. ..Mouthpieces of the owners, and without talking football., couldnt talk within the real world of business.!! AND, .. They do it on money that does not EXIST!! .. all borrowed from make-believe land!!,. UEFA is right!! Support yourself.... not expect others to carry you!!!

Posted 15:25 22nd January 2010

Gene Matthews (Liverpool fan) says...

Although Platini is trying to implement a scheme that disadvantage the English clubs the most, the fundatmentals are understandable! Football clubs must be able to sustain their own existance!! Whilst the likes of the Glaziers (Man U) and Gillette/Hicks (Liverpool) have fun trying to make a buck or two in the "beautiful game", they are not help the situation.

Posted 15:24 22nd January 2010

Ivanoff Peralta (Manchester United fan) says...

Blue Moon, MCFC are only debt free because their debt has been written off by the owners. It would have taken City over 10 years to be self sufficient and not to depend on the owners. There is no merit in teams playing well only because hundreds of millions of pounds have been pumped in by wealthy owners. The owners could have bought any mediocre team and made it successful. City has always been and will always be a mediocre club.

Posted 15:13 22nd January 2010

Thomas Carpenter (Arsenal fan) says...

It seems once again that UEFA are just trying to weaken English football, least we continue to be the dominant force in Europe. I would like to see what they make of Real Madrid's crazy spending, especially since Platini has said he has "no problem" with the crazy transfer fees they have been paying out. It wasn't long ago when Platini slammed Man City and Chelsea for doing something similar.

Posted 15:11 22nd January 2010

Dave Stone (Arsenal fan) says...

Arsenknows again and would be great for the sport long term think of those poor young players only earning £10k a week rather than £100.000,hopfully it would get a lot of corporate crap out of the game and give it back to the people

Posted 15:06 22nd January 2010

Dougie Mccormack (Celtic fan) says...

blue moon please note that the micky mouse club that he/she refers to is debt free and been to more european finals than mcfc. the only one mcfc has been to no longer exsists and watched by the lowest ever for a european final!! this ruling is a double edged sword. its good that you can only spend within your means but for smaller clubs there seems to be no chance of progress not unless there youth policy is second to none. the teams that qualify each year for champions league would be the only ones that can spend big so adding to there already big and successful squads.

Posted 15:05 22nd January 2010

Chris Cass (Manchester United fan) says...

well well well Platini is doing the job he set out to do kick the crap out of the Englishs teams so that the French , Spanish , Greman and Italian teams can rule Europe well come on England stick it up him and do the world a favour and win the World Cup but if uefa and fifa have there way we will be kncked out by the referees now who says that Plantini is not bias and in the pockets of Blatter its all about anti England they dont like us because our teams have a good run in the champions league it about time that the English had a say what goes on in football bye bye Platini

Posted 14:58 22nd January 2010

Neil Allen (Manchester City fan) says...

What a load of complete rubbish that is, the rich owners will (if they possess any sense) go to a side that has the potential to get better, but is not at the top at their time of buying, hence they get what they consider a "bargain"....if all the rich owners went to the big clubs then there never would be this argument, the only thing to bring this stupid and crazy idea to the brainless Unfit Egotistical Foolish Agency is Manchester City, if City had not been bought this would NEVER have happend, as there would have been no real threat to the European cartel then. As for his second, how will Brighton or the likes be able to compete with United, Newcastle or Arsenal (sides who get 55,000+ when in the top flight) attending if they can only spend what they earn??, it is impossible and this idea would actually KILL this game once and for all, as many people would stop going, because the competition for prizes would be nil, and if all debted clubs and clubs with mega rich owners were not allowed to compete in the CL, then we might have a side who ended 13th playing in the CL for England, and a CL Final could be a game between AEK Athens vs Legia Warsaw..........I can see the masses tuning in to see that!

Posted 14:58 22nd January 2010

Cesc Fabregas (Arsenal fan) says...

This rule wont stop the rich owners. It will only help them. Ordinary clubs wont be able to at least try to get better by taking some loan. The only way will be to have rich owners to finance the clubs off balance sheet. Like city does. (instead of putting money in the club directly as capital or loan, they take some company that they own, and buy, say 1 min of advertising from them for too much money. this way city only sees growth in turnover and debts standing still. Although in reality it is paid capital by the owners and they will want it back sooner or later)

Posted 14:56 22nd January 2010

Roger Myers (Chelsea fan) says...

Figures Idiots Like Paddy Jones will trot out the same rubbish about clubs "Buying Trophies". Last time I looked you had to send 11 Men out to Win Matches to win trophies., but maybe I'm not quite so tuned in as a Man Utd. Fan - Who never buy big so they can mount a challenge for silverware !! Every CLub spends Big money , so how exactly is that Buying trophies. ?

Posted 14:50 22nd January 2010

Don Braye (Arsenal fan) says...

Waoo great platini i agree with u and let see how its'll really workout with a lot of top European clubs with big dept e.g. Man utd, Real m, Cheski...etc

Posted 14:46 22nd January 2010

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