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Uefa ushers in “financial fair play”
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Uefa has approved the “financial fair play” rules which it hopes will curb reckless spending and the danger of bankruptcy in European club football.
Reuters reports that the key rules are that clubs will only be allowed to enter European competition if they are breaking even – if money from sources including TV rights, gate receipts and sponsorship is equal to or greater than their expenditure; and clubs are barred from owning money to other clubs, players, tax authorities and social service departments. The system will be phased in and the first time a club could theoretically be banned from European competitions is 2014/15. "[The rules] are there not to punish clubs, they are there to help clubs,” said Uefa general secretary Gianni Infantino. “We don't want to kill anyone, this is why we have a phased-in approach.” The European Clubs Association, representing Europe's professional clubs, welcomed the rules. "This is really a huge achievement," said ECA president Karl-Heinz Rummenigge. "The measures will shape the future of European football into a more responsible business and ultimately a more sustainable one." |
