UEFA close door on legal challenge and talks tough

April 15, 2012

Article published 29 March 2012

Last week was an truly excellent week for Platini and saw him secure approval from the European Commission to the Financial Fair Play rules. Platini has been concerned that any excluded club may challenge the legality of the punishment (hence he recently bolstered his legal dept) (see article from 16 March).  Approval from the European Commission was essential for Platini as he has now closed the door on any legal challenge.  He must have been delighted to see that they didn't just confirm the legality of the FFP regulations but went a step further and said that they supported the rules; "I believe it is essential for football clubs to have a solid financial foundation" said Joaquin Almunia, vice-president of the EC. As the attached article explains, any club wishing to complain about their FFP punishment has to take their grievance to ..... the European Commission.

Platini would have been aware of Commission's intention to approve the FFP rules when he gave his interview to AFP a few days earlier.  The statements from Platini are probably the toughest and most forthright pronouncements on his personal project: 

 " There'll be no backtracking",

 "We (at UEFA) probably won't be popular but we have to do it, otherwise football will be destroyed"

Platini said he was prepared to be in the firing line if clubs that transgress were banned from European competition but he said the rules were "important for the legitimacy and popularity" of the game

http://www.independent.co.uk/sport/football/news-and-comment/platini-wins-ec-backing-for-financial-fair-play-regulations-7580682.html

http://www.football.co.uk/manchester_city/fair_finance_vital_for_football_-_uefa_s_platini_rss2146563.shtml

 

Ticket prices subsidised by club losses

April 15, 2012
Article published 22 March 2012

Analysis by www.financialfairplay.co.uk reveals the increased ticket price that clubs would need to charge if they were to manage on a 'break-even' basis and if the ticket prices were increased to account for the shortfall.  The study of Premier League finances reveals that fans receive match-day ticket subsidies averaging at £25 per ticket.  Although Man City's place at the top of the subsidy table will surprise few, the level of loss per ticket sold (£161) i...


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Spanish Tax debt causes stir in Germany

April 15, 2012

Article published 20 March

Last week, questions were asked in the Spanish parliament about the amount of tax that was owed by Spanish clubs to the government.  The government was forced to admit that it was owed  €752m in back taxes (including 48m owed by Barcelona and 155m owed by Atletico Madrid).  The issue was quickly compounded by the Sports Minister Miguel Cardenel brazenly announcing that they were looking at ways that debt could be written-off.  The reaction from German clubs w...


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UEFA boosts legal dept to face FFP challenges

April 15, 2012

Article published 16 March 2012

David Conn of the Guardian is one of the most informed journalists regarding FFP. He has contributed to a particularly interesting article produced by CNN.  He outlines that UEFA are "readying themselves for legal challenges from top clubs and sending out a clear message they will be able to counter them," Conn points to the strengthening of the UEFA licensing and legal team with the appointment of top English lawyer Alasdair Bell."

http://edition.cnn.com/2012/03...


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The German footballing model

April 15, 2012

Article publishe15 March 2012

Dan Storey at football365 has written an excellent article on the German footballing model. He makes some interesting points:

  • A minimum of 51% of each club must be owned by the club's members
  • Club members have the ability to directly affect the running of the club
  • A season ticket for Borussia Dortmund costs £152 for 17 domestic home games and one European game
  • Average attendance in the Bundesliga last season was 42,690 (7,000 more than the Premier League)
  • Due to the...

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Fans heavily subsidised by high-spending clubs

April 15, 2012

Article published 11 Mar 2012 

With UEFA keen to ensure clubs' expenditure matches their income, we have carried out some high-level analysis of the subsidy levels that fans currently enjoy.   Looking at two clubs currently in the media spotlight (Man City and Portsmouth), we have calculated how much extra the average fan would have to fork-out if they were to pay the market rate for their ticket (based on the club operating on a break even basis).  

The results are fairly staggering. Man City ...


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Chelsea hit hard by AVB adventure

April 15, 2012

Article published 10 Mar 2012

Under FFP regulations the cost of acquiring a player's contract (i.e. the transfer fee) has to be written off over the life of the contract.  However, the same restriction does not apply to other contracts. The cost of acquiring a manager's contract (eg.  André Villas-Boas) can be written-off immediately as a one-off hit against that year's financial results.  When Chelsea sacked Ancelotti, they decided to write off the cost of paying up his contract AND the cost...


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Sanctions to be ratified on 20-21 March in Istanbul

April 15, 2012

Sanctions to be ratified on 20-21 March in Istanbul 7 Feb 2012

At the 24/25 Jan Executive Committee in Nyon, a number penalties for failing to meeting FFP criteria were agreed. Three sanctions are still to be approved and will be tabled at UEFA EXCO in Istanbul at the end of March.  The Media Pack has been attached at the foot of this article and outlined the penalties as follows:

Potential Sanctions
  • Reprimand / Warning
  • Fine
  • Deduction of Points
  • Withholding of Revenue from UEFA competition
  • Prohibitio...

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The bell tolls for Pompey

April 15, 2012

The bell tolls for Pompey 2 Feb 12

If Michel Platini lies awake at night wondering about the wisdom of pressing ahead with FFP regulations, he might do well to consider events at Portsmouth.

Pompey went in Administration in 2010 having run up debts of around £135m. The club had adopted a wage structure that could only ever be sustained through cash injections from the Gaydamak family. Once the funds dried up, the club found they could not pay the wages and Administration followed.

In a recent i...


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Rummenigge calls for City to be banned - Mancini takes the bait

April 15, 2012

Rummenigge calls for City to be banned - Mancini takes the bait 6 Dec 2011

A public argument has broken out between Bayern Munich and Man City over the penalties for breaching Financial Fair Play regulations. In an interview with Austrian website www.90minuten.at Bayern CEO Rummenigge makes a stinging attack on City’s spending and expressly calls for UEFA to exclude them from European competion..  Rummenigge explains:

“I recommend that Uefa should think of harsh punishments, otherwise there...


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