Re: Serious question relating to us and FFP
Can' say fairer than this!
Uefa report reveals 46 European clubs need funds to meet financial controls with Man City one English club at risk
Uefa has said that 46 European teams would require funds to meet incoming fiscal control regulations, after a report revealed that clubs’ losses widened by two per cent to €1.68 billion in 2011.
Feeling the heat: PSG, who signed David Beckham during transfer window, at risk of failing to meet Uefa’s requirements Photo: GETTY IMAGES
By Telegraph Sport11:24AM GMT 04 Feb 20131 Comment
An analysis of the finances of about 700 clubs released today by Nyon, Uefa showed sales of €13.2 billion in 2011 were eroded by €9.4 billion worth of spending on players and salaries, a 43 per cent increase over five years.
Clubs are being assessed by a group led by a former Belgian prime minister as part of Uefa’s so-called financial fair play regulations, which aim to reduce debt and prevent teams from spending above their means. Those that fail to meet targets face sanctions including suspension from the continent’s Champions League and Europa League competitions.
“Numerous football clubs, including some prestigious ones, have experienced severe financial difficulties, leading to top division clubs’ aggregate losses increasing again,” Uefa President Michel Platini said in the forward to the 2011 Club Licensing Benchmarking Report.
“Keeping costs under control and within sustainable limits is and will continue to be the clubs’ biggest challenge.”
The report said the trend of growing losses has affected clubs of varying sizes across Europe, with the 10 largest loss- makers increasing their combined deficits to €856 million from €596 million in 2007. The balance sheets of the next 20 leading loss-makers deteriorated by a combined 310 million euros over the same period.
Uefa's rules allow teams to have a maximum loss of €5m, or as much as €45m as long as the deficit is covered by an equity contribution, over two years through 2013. The assessment period will be increased to three years for future seasons.
Using a simulation based on fiscal results from 2009, 2010 and 2011, 14 teams playing in European club competitions this season had losses over the €45m limit and another 32 clubs reported cumulative losses of between €5m and €45m.
Clubs at risk of failing to meet Uefa’s requirements include Premier League champions Manchester City, three-time European Cup winners Inter Milan and Paris Saint-Germain, which has spent more money on players than any other team since it was acquired by an investment arm of the Qatari government in 2011.
PSG, which signed former England captain David Beckham four days ago, has spent more than $350 million in the transfer market in two years and intends to continue spending.
“It’s necessary to become one of the great European clubs,” PSG President Nasser Al-Khelaifi said told France’s L’Equipe newspaper last month. “Other clubs have invested for 20 years. We have been there for a year and a half and now we must stop pouring money? It would be unfair.”
City, PSG and other teams have tried to mitigate losses by raising income through sponsorships and Uefa said it will look at the agreements to ensure they represent fair value.
City, owned by a member of the Abu Dhabi ruling family, has four sponsors based in the emirate including airline Etihad, which last year agreed to pay 350 million pounds ($551 million) to put its name on the team’s stadium, jerseys and new training campus. PSG will get as much as €200m a year from Qatar Tourism Authority through 2016.
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