This is a special article written for us by Duncan McHardy:
In 2010 Europe’s top clubs were vehemently warned by UEFA that failure to break-even in the near future would result in exclusion from European competitions. In England we have seen the owners of Chelsea and Manchester City swap debt for shares in order to comply with the looming financial fair play (FFP) rules.
This is a special article written for us by Duncan McHardy:
In 2010 Europe’s top clubs were vehemently warned by UEFA that failure to break-even in the near future would result in exclusion from European competitions. In England we have seen the owners of Chelsea and Manchester City swap debt for shares in order to comply with the looming financial fair play (FFP) rules.
This year however, other Premier League clubs including Manchester United, Bolton Wanderers and Everton will have to face up to their debt laden finances if they are to compete in Europe in the 2013/2014 season.
UEFA seemingly have the interest of all professional clubs at heart. The FFP rules seek harmonise the financial power of clubs to prevent overspending and unrealistic ambition. In a press release yesterday, UEFA said, “The measures are designed to protect European football’s long-term health and viability, as well as … stimulate long-term investment in areas such as youth development and the upgrading of sports installations”. The profligacy of some English clubs have caused progressive anxiety in Geneva. The fact of the matter is, England is unparalleled in the flexibility of club ownership whether it be though an oligarch, consortium, or even public share listing (back in the 90’s/00’)s. English clubs have had it too easy.
While several English clubs have consequently become the playthings of the rich, it should be remembered that poor financial management has lead to the demise of a few, the most recent example being Portsmorth. As UEFA President Michel Platini explained “Supporters and lovers of football have no interest in seeing clubs that are part of European football’s heritage disappear as a result of hazardous management. It was necessary for an authority to intervene, and this is what we are doing.”
UEFA revealed last year that over half of the commercial debt accumulated by European clubs related to clubs in the Premier League. It’s about time our clubs get their respective houses in order.