"Game over for football’s sugar daddies"

[Klaus Daimler]

Game over for football’s sugar daddies

English football’s super-rich owners, including Roman Abramovich and Sheikh Mansour, face drastic curbs on their influence under Uefa proposals.

The extent of the crackdown on "financial doping", championed by Michel Platini, the Uefa president, is laid bare in a 60-page document seen by The Times. In it, Uefa sets out its detailed plans to force clubs towards break-even, allowing them to spend only what they earn.

Owners would be allowed to inject cash to cover losses for a transitional period, but the amounts will be restricted and closely monitored.

Over the initial three-year period of regulation up to and including 2015, owners would be allowed to cover losses totalling "45 million (about £40 million). The “acceptable deviation” from break-even would then fall to £30 million over three years and then less, with the amount to be determined.

In other words, an owner such as Sheikh Mansour would eventually be permitted to put less than ¤10 million a year into Manchester City on average, unless the money is spent on infrastructure or the youth team, which have no limits on investment. That compares with City’s most recent loss of £89.69 million.

While Platini has talked for months about introducing "financial fair play", the working draft has brought those proposals into sharp focus.

The European Club Association continues to haggle with Uefa for concessions. It is arguing for a five-year accounting period, rather than three, and for owners to be allowed to invest extra funds through equity rather than debt.

Platini is determined to bring in regulations that will mark a watershed in the English game.

While the proposals will be phased in over several years, many clubs will have to make significant changes — drastic in the cases of Chelsea and City — if they are not to fall foul of the new regulations and face a possible ban from European competition.

I've only read the first twelve pages so far so I'll refrain from having too many opinions about it for now, but I like how the entire purpose section is like a summary of what's going on at Arsenal:

The new club monitoring requirements aim principally to:
• Introduce more discipline and rationality in club football finances;
• Decrease pressure on players’ salaries and transfer fees and limit inflationary effect;
• Encourage clubs to compete with their revenues;
• Encourage investment for the long-term benefit of clubs, such as investment in infrastructure
(sports facilities) and in youth;
• Protect the long term viability and sustainability of European club football; and
• Ensure clubs settle their liabilities on a timely basis.

Download the report here.

 

[Del Boy]

Tbh I can't see it having much of an effect. There would be so many loopholes for something like this.

 

[Klaus Daimler]

I don't think so. They've actively been working to eliminate the backroads. It's gonna need adjustments as it goes along of course but this is the biggest step towards financial fair play in European club football that has ever been taken, and has to be viewed in that context.

Patrick Barclay wrote a good (short) piece about the initiative this morning.

 

[Illusion]

In many ways it's too late to fix what has already happened, especially taking several years to put in any kind of plan.

It might prevent the most extreme situations (City may have an issue) but it's not going to stop Chelsea.

 

[Humble Rex]

This is a great initiative, and if it well thought out, and well implemented, I think it will benefit football as a whole.

 

[Klaus Daimler]

It's gonna stop Chelsea and City to the extent that they can't keep doing what they're doing. It's automatically going to limit the insane salaries they're offering players too.

 

[True Gooner]

In many ways it's too late to fix what has already happened, especially taking several years to put in any kind of plan.

It might prevent the most extreme situations (City may have an issue) but it's not going to stop Chelsea.

It's not too late. It'll stop other potential buyers from taking over the likes of Fulham and Birmingham and turning them into financial monsters.

And of course it's going to affect Chelsea, I dare say it'll affect a majority of clubs in the league. Although most of them should be able to adjust to the new ruling faster than others.

 

[Del Boy]

Even if it is foolproof, something like this should have happened around 2002. Instead only a proposal has been thus far, that may come into affect in 2012, a decade later.

They get things done fast at UEFA... :roll:

 

[True Gooner]

Even if it is foolproof, something like this should have happened around 2002. Instead only a proposal has been thus far, that may come into affect in 2012, a decade later.

They get things done fast at UEFA... :roll:

Better late than never?

 

[Klaus Daimler]

Even if it is foolproof, something like this should have happened around 2002.

Or in 2000 when Perez kicked off the first Galacticos era at Real Madrid. Or in 1995 when Massimo Moratti took over Inter. Or in 1988 when Cruyff assembled Barca's dream team. Or in 1986 when Berlusconi began to make the most successful team in Europe out of a relegation threatened AC Milan by spending unpreceded amounts of money.

This has been going on for decades. I like the fact that they at least try to do something about it before football turns into Formula 1. Even if they've only recently awoken to the fact that the lack of economic regulations is seriously harming football.

 

[Accomplished]

good concept, I like it...

 

[banduan]

So what checks and balances will they have for clubs charging directors 500k every time they sneeze and handing out pepper-laced prawn sandwiches for free? followed by one of the directors ordering a trolley-load?

 

[Clrnc]

Too late, no use now when they already have a good team. When this happens, they just sell and replace. Easy enough

 

[Burnwinter]

Hmm.

I'm glad to see they're at least considering the distortion this will cause and talking about phasing it in somewhat gradually. This sort of change is massive and will reshape football, if it happened overnight it could have the potential to turn whole leagues to farce temporarily.

I dislike the leveraged buyouts a la the Glazers or Hicks and Gillett more than the genuinely cashed-up sugar daddies a la Abramovich and Mansour. At least in the latter case the ends are to do with football.

Of all football followers, we gooners can probably feel the most complacent about these changes. That is a pretty sweet thing. I feel quite sorry for the supporters of (some) other clubs who don't necessarily deserve the leaders that are foisted upon them.

Some more other clubs can go **** themselves

I think going as far as demanding that clubs be run profitably year to year modulo external investment would be excessive - they're not proposing that as a hard line are they?

 

[outlaw_member]

...but Platini hates English football and is trying to destroy it's supposed dominance over Europe. :roll:

Seriously though, it's a brilliant idea from a man who really only has the welfare of the game at heart.

 

[DREVAK]

Nothing is going to improve.

 

[True Gooner]

Too late, no use now when they already have a good team. When this happens, they just sell and replace. Easy enough

But the players they sell would be in decline or would fetch lower sums than what the club initially paid for them therefore replacing them won't be as easy.

Nothing is going to improve.

Cynic.

 

[brady-hero]

i think this is a great idea if done right. the biggest teams in Europe should be the most financially viable because they have gigantic support rather than a sugar daddy. arsenal, man united, liverpool,ac milan, barcelona, real marid, bayern munich,inter milan all have huge support and although (some have bad ownership) they should all be at the top table because of their support base rather than their sugar daddy's money

 

[regele]

Nothing is going to improve.

I thought I was the only one who believes that, the power is with the clubs not with UEFA and I doubt they'll agree to that.

 

[brady-hero]

would there not be an overwhelming desire from Uefa clubs to support this? for every chelsea and Man City theres 18 other clubs who don't like the financial power they have? wouldn't every club in Germany/france/ireland/scotland/most of england/italy/spain and the other countries go for this proposal