With the Uefa financial fair play rules leading to sanctions from 2013-14, top clubs need to have a strategy in place to make sure that they can comply. It is suggested here that the idea of a European Super League is back on the agenda and it was certainly considered seriously some ten years ago. However, I do not think it is really viable. The domestic competitions remain important both to clubs and to fans.
With the Uefa financial fair play rules leading to sanctions from 2013-14, top clubs need to have a strategy in place to make sure that they can comply. It is suggested here that the idea of a European Super League is back on the agenda and it was certainly considered seriously some ten years ago. However, I do not think it is really viable. The domestic competitions remain important both to clubs and to fans.
It looks as if Manchester City are going to spend big again in the January transfer window. They think that, beyond their minimum goal of Champions League qualification, they can have a real shot at the title. Of course, a collection of talented players does not make up a team. But I do think there is at least a possibility for them.
Given that wages exceeded turnover in the last set of accounts, what is their strategy for becoming compliant with the Uefa rules? They want to increase the revenue stream and are looking at various options for expanding the City of Manchester Stadium which at present has a capacity of 47.726, far smaller than Old Trafford. A medium-sized expansion would increase capacity to 60,000, but City will only go ahead if the figures stack up.
They would also like to increase further the use of the stadium for various events. When they moved from Maine Road in 2003, they signed a 250-year lease with the City Council. In September they signed a new agreement which means that the council no longer gets a share of matchday revenues, but an annual fee of around £3m which increases with inflation. If City succeed in Europe, additional payments are made. This is a good deal for the club.
They would also like to sell the naming rights for the stadim. Eastlands is a rather bland title and does not particularly engage fans. They are boosting sponsorship revenue and in two years have gone from two lead sponsors to ten.
City have acquired 80 acres of land in inner city Manchester at Openshaw West with a view to re-locating their whole coaching set-up there from Carrington which is a tenth of the size. This type of expenditure should not count in relation to the Uefa rules, although I think that the rules themselves may need to be tested in court.
As far as global markets are concerned, there is an acceptance that Manchester United and Livepool are way ahead in the key Asian market, but it is thought that there may be opportunities elsewhere in Europe.
Sheikh Mansour has certainly not stinted in his spending:
- £210m to buy the club
- £9m on improving the City of Manchester stadium
- £4.5m improving the Carrington training ground
- £3.7m expanding the Platt Lane academy
- £355m on new players
- £3.1m building new offices
- £3m a year on a new scouting operation
So even before you factor player wages in that’s getting on for £600m. One can cut back at some point on transfers, but it is getting those player wages under control that is the real challenge for City in the context of the financial fair play rules.