UEFA warn against mounting debt - Inside World Football

By Andrew Warshaw

January 29 - UEFA’s general secretary Gianni Infantino (pictured) has painted a grim picture of the state of European football, revealing that 50 per cent of the biggest clubs are losing money.

Infantino, who recently replaced David Taylor as the second most important figure at UEFA after its President Michel Platini, says there has never been a more vital time to tighten up the rules to make sure clubs do not get too heavily into debt.

UEFA are planning to bring those rules into place later this year, putting flesh on the bones of its Financial Fair Play initiative launched in 2009.

It will mean that from 2013-2014 clubs must break even – only spending the money they generate – or risk facing exclusion from the Champions and Europa Leagues.

“I would not paint such a cataclysmic picture of major clubs folding because football has always shown there can be solutions but having said that, we are seriously worried to see these trends,” Infantino said.

“The clubs themselves are worried, the leagues are worried.

“These are the reasons that pushed us to take the decision to do something.”

In an interview with Reuters, Infantino added: “One could say if a club goes bust, ‘Who cares?’.

“But we care.

“We care for that club and all the other clubs who would have problems because one club has gone and not paid them and then there is a spiral.

“We are doing this after very detailed research.

“Our report has analysed 650 clubs all over Europe and it shows around 50 percent of those clubs are making losses every year – and 20 percent are making huge losses.”

Crucially, UEFA draws a distinction between clubs in debt and those making losses and will not penalise clubs in debt to their own banks – only those who owe money to other clubs, or who have not paid their players and staff salaries.

Clubs who continually lose money over a multi-year period will also face sanctions.

“The main reason for financial fair play is it is a tool to help improve the long-term stability and the financial health of European club football,” Infantino said.

“It should help clubs live within the revenues they generate.”

UEFA are not permitted, under European law, to impose a salary cap but can call for a ceiling on the amount of income spent on wages, a subtle distinction.

“The limit would be the break-even rule,” Infantino said.

“You could spend 80 per cent of your income on salaries if the rest of your costs are 20 per cent, travel costs, for example, everything, that is ok. But if your other costs are higher then the salaries have to go down.”

There will be exceptions to the new rules, such as clubs incurring losses because of funding a new stadium, ground improvements or investing in an academy.

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