UEFA'S NEW FINANCE RULES

Michel Platini is leading the way in controlling footballs out of control finances with UEFA bringing in a set of new rules and regulations that would see clubs living beyond their means banned from European competition.

After almost a decade of foreign sugar daddies buying clubs and chucking vast amounts at the club in a bid to buy success, we have also seen a record number of clubs dive into administration and flirt with liquidation.

Finally this appears to have worried those at UEFA and shaken them into action. They want clubs to be breaking even on all footballing matters over a three year period, so the clubs have time to get their books in order, and the ban from European competition is a last
resort.

It really is time something was done to curtail out of control spending. You’d have thought big football clubs, apparently being run as businesses, with experienced chairmen, chief execs etc. would be able to keep spending under control, but just looking at the piles of debt at Manchester United and Liverpool show that UEFA might just need to take control, or at least keep a closer eye and a firmer hand on things.

The new rules would let a club lose a set amount over the first three seasons, dropping down gradually and eventually reaching zero.

As mentioned earlier, the ban is a last resort, and if a club can prove that they are moving in the right direction, and losses are being reduced year on year, then no sanctions will be taken.

And UEFA have also said any clubs trying to flaunt the new rules, or hiding bad finances will be cracked down on twice as hard.

The new rules are a positive step, less a set in stone rule and more a massive deterrent. With the money a club can bring in from television revenue from The Champions League, they will be sure to keep their books in order.

It should force the owners to become more responsible.

The problem will come the further down the football pyramid you go. There are by far more clubs who won’t consider getting into Europe a manageable aim, there are many who won’t even factor it into the
equation at the start of each season. Not just in the lower leagues, but in the top flight as well.

I can’t see Qpr, Carlisle or Torquay being too put off about living beyond their means with the threat of being banned from European competition looming over them, it just doesn’t affect them.

UEFA need to come up with a plan to stop all professional clubs in all European countries from making a loss and coming close to rack and ruin. Or at least work with their member countries FA’s to come up with a plan of action.

The current way of deducting points for a club going into administration doesn’t work. It pretty much condemns a club to relegation, or no chance to compete within their division that season.

It’s hard to say what would be the best way forward. Perhaps a transfer embargo, which would stop a club spending more on players and wages. A wage cap would be another alternative, with only a certain percentage of a clubs turnover being allowed to be spent on wages.

UEFA have taken a big step in the right direction, but they need to look after the whole of football, and not just those dining at the top table.

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