Platini warns that risky clubs could be expelled
Written by Jonathan Chong on Thursday, August 27, 2009
UEFA President Michel Platini has issued a warning to the big spending clubs that they face expulsion from the Champions League if they continue to spend beyond their means.
Platini has said that clubs such as Manchester United, Liverpool and Chelsea must show that they are breaking even financially within three seasons or their statuses in the competition will be reviewed.
It seems that Platini has finally found something to agree with Arsenal manager Arsène Wenger on, with Wenger also being publicly critical of clubs who spend beyond of their total financial incomes.
Chelsea are bankrolled by their billionaire owner, whilst Liverpool have recently restructured their debts in order to meet the necessary repayments on their own debt. Manchester United have a substantial debt as well but have recently been given the highest possible credit rating by Equifax due to the confidence in the Old Trafford club's ability to service it, though it has to be repaid by 2017.
Real Madrid are reportedly £550 million in the red, but can point to substantial commercial income from shirt sales and television revenue.
UEFA are finally coming round to the fact that the billionaire culture is not beneficial to football, especially with clubs like Manchester City and Real Madrid spending unrealistically in order to win football's biggest trophy.
Platini said: "I do not want to be a UEFA president who, during his term of office, sees prestigious clubs that form part of our sport's heritage disappear from the football map due to bankruptcy.
"I do not want to be a UEFA president who, during his term of office, does nothing to curb certain abuses and turns a blind eye to certain risky management strategies.
"The idea is therefore to put in place a series of measures over the next few years in order that, in the long run, clubs do not spend more money than they earn. It is a short and simple phrase, but it will have huge consequences in producing healthy club football that can look forward to a prosperous, honest future.
"Please understand me when I say that financial fair play will not necessarily reduce all inequalities. There will still be financially powerful clubs and clubs with limited resources. This is what makes football so popular: the fact that the little teams can beat the big ones. May uncertainty reign!
"However, financial fair play will enable us to introduce greater integrity, fairness and transparency in football. Financial fair play is a question of morality, ethics and common sense."
UEFA deputy general secretary Gianni Infantino insisted: "A rich sugar daddy coming in and throwing money around is unhealthy in the medium and long-term.
"For the club to be healthy it has to live on its own means and generate income. Clubs have generated revenues by investing in things like stadiums, otherwise it is an artificial bubble which inflates the system and is unhealthy and unsustainable."
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