Uefa’s revised agenda is…
- Introduce more discipline and rationality in club football finances;
- Decrease pressure on players’ salaries and transfer fees and limit inflationary effect;
- Encourage clubs to compete with their revenues;
- Encourage investment for the long-term benefit of clubs, such as investment in infrastructure
- (sports facilities) and in youth;
- Protect the long term viability and sustainability of European club football;
- Ensure clubs settle their liabilities on a timely basis.
Clubs’ revenues will be monitored over a three-year period and they will be expected to operate within their means with a latitude estimated at €5 million euros.
The strategy focuses on the here and now, not existing debt and crucially, turnover not profitbility.
Other ‘exemptions’ from UEFA’s calculations will include new stadiums, community activities, training ground development costs and operation of club’s youth academies.
Monies to top up any other aspects of a club’s business activities will be capped at €45million over each 3 year period.
Looking at the latest figures, Blackburn, Tottenham, Manchester United, Arsenal, Hull City and Stoke all provided books that demnostrated a profit.
Fulham, Everton, Wigan, Wolves, Bolton, Birmingham and West Ham all ran at a small loss and it is not unreasonable to believe that the ‘exemptions’ and an additional ‘top up’ by a rich owner of €15 million per season would bring them all pretty much into line with the new schedule.
By current standings, Liverpool, Chelsea, Manchester City and Aston Villa would all be screwed.
This is all anticipated to be rolled out for the 2012/2013 season.
Now has anyone got the number of a good accountant?
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