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UEFA Takes out the Scissors ...

17 June 2010 / 14:06:35  GRReporter
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UEFA decided to put an end to the unrealistically high costs in football. The European football governing body is firmly convinced that there is no room for debts and irrational use of funds in times of global economic crisis. UEFA is drawing up new laws for football teams sponsoring. The driving force of the change is the so-called Financial Fair Play, which aims to provide a more robust financial system in the European football.
 
The most important requirement that teams will have to meet in the future is the balance at the revenue-expenditure level. UEFA allows a 3-year period for adaptation to the new football reality. The work of the clubs will be evaluated once in three years. The maximum allowable loss which the football governing body determines can not amount to more than € 5 million. In this way the teams which have a negative balance after 2014-15 will lose their right to participate in European championships.

UEFA voted the new measures unanimously. According to Todoros Todoridis, Deputy General Secretary of UEFA for Greece, this is a different reality expressing the need every team to spend as much as it has. “The unreasonable high costs of transfers and salaries of players led to a suffocating situation in European football and it’s time to take measures in view of the the prospect of collapse that occurs. The European Federation is trying to limit the inordinate differences that were formed in recent years.”

The economic Fair Play does not include costs for the construction of stadiums and other sports facilities. The aim is just to reduce the unrealistically high costs of transfers and payments to players. Investors will be entitled to support the clubs with total € 45 million for the periods 2013-14 and 2014-15, while for the next three seasons the amount will be reduced to € 30 million in total.

To guarantee the implementation of the measures UEFA has formed a group for economic control of the clubs, headed by the former Prime Minister of Belgium Jean-Luc Dehaene.

UEFA’s idea is simple and realistic. It is all about a “fairer football” according to the General Secretary Gianni Infantino. “We must put an end to the current situation in which money constantly fall from the window without actually having coverage. As a result, it is all thrown away (cost of transfers, the price of contracts) and fictitious values are made.”

This goal, of course, is based on the hope that the changes will make high-quality investors to invest their money. They are afraid presently that in order to withstand competition they will have to throw their money. “Much more secure and transparent conditions for investment in football can be offered in this way. With a limit for their losses” – said Infantino concerning UEFA’s decision.

Tags: UEFAFootballSportCrisisFinancingNewPlan
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