Efforts to cap spending in football are always welcomed in principle, but the devil is in the detail. Rules like those embodied in Uefa’s financial fair play scheme can have the effect of pulling up the ladder behind already successful clubs.
Efforts to cap spending in football are always welcomed in principle, but the devil is in the detail. Rules like those embodied in Uefa’s financial fair play scheme can have the effect of pulling up the ladder behind already successful clubs.
Given that they have recently reported good profits for their first six months back in the Premier League, it may seem odd that Southampton are complaining about the Premier League’s new spending rules which have to be ratified in April. Executive chairman Nicola Cortese stated, ‘We believe very strongly that each club should be allowed to run their business – including payrolls – as they see fit.’
Southampton have a point. The amount of television money that clubs will be allowed to spend is to be capped at £52m. Television money is important but not central to the likes of Manchester United and Manchester City with their substantial commercial income and big gates. For Wigan Athletic it accounts for 90 per cent of their income.
Take the case of Queens Park Rangers. Last year they spent £58.5m or 90 per cent of their turnover on wages. The figure could reach £70m this year. That would breach the limit, but they would still be able to spend the same again with £4m on top.
Everyone is starting off from a different position and those who have already been profligate are favourably placed in relation to more prudent clubs. An alternative approach would be to limit spending to turnover.