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NYON: UEFA president Michel Platini told European clubs they would “face the music” if they flouted rules restricting spending after it was announced they had chalked up losses of 1.2 billion ($1.55 billion) in 2009.
Platini said UEFA's Financial Fair Play plan, introduced last year to force clubs to live within their means, was the only way to stop the continent's clubs from sliding into financial disaster.
“None of us who love football have any interest in seeing clubs which are the heritage of European football disappear because of risky management,” Platini told reporters on Tuesday.
“That is why someone had to intervene.
“I want to be proud of being proactive and not having ignored a problem which everyone was aware of and nobody wanted to take on.
“The day I leave UEFA, I would like to be able to look back and see clubs in a better and sounder financial situation and sounder.”
Clubs could be banned from European competition from the 2014/15 season if they do not abide by the new rules which effectively stop them spending more than their generated revenue.
Platini said he would not shy away from enforcing the rules even if it meant keeping a big club out of European competition.
“If a club doesn't fall in line and live by the same rules as everyone else, they will have to live with the consequences,” he said.
“It will be time for them to face the music.”
The basis of the new UEFA rules is to end the practice of clubs spending recklessly to try to win titles – often with the help of rich owners who inject huge amounts of cash – in turn forcing rivals to overspend to keep up.
“This is not a witch hunt, it's a wish to no longer continue living blindly and mindlessly,” Platini said.
HIGH WAGES
UEFA general secretary Gianni Infantino said 56 percent of Europe's 733 top-flight clubs were in the red in 2009.
Infantino said that although clubs raked in 11.7 billion euros, a rise of 4.8 percent over the previous year, they spent 12.9 billion euros, a rise of 9.3 percent.
High wages have been identified as the main cause of overspending and Infantino, who described the new rules as an “indirect salary cap”, said clubs had spent an average of 64 percent of their income on wages.
He said 73 clubs had spent more than 100 percent of their revenue on wages.
UEFA will monitor the clubs' financial performances over three seasons before admitting them to European competition but will allow them some leeway as the new rules are phased in by 2014/15.
Those with annual revenues of under 5 million euros will be exempt while all others will be allowed aggregate losses of up to 5 million euros over three seasons.
Initially, a deficit of up to 45 million euros will be allowed over three seasons if it is covered by “contributions from equity participants”.
This will be reduced to 30 million euros over three seasons by 2018/19.
Karl-Heinz Rummenigge, president of the European Clubs Association (ECA) which boasts all of Europe's top clubs among its 197 members, said he fully supported the changes.
“I'm at the helm of a large club and the complete meltdown is when a team qualifies on the pitch and UEFA tells them they cannot play for financial reasons,” said the former West Germany forward, who is chairman of Bayern Munich.
“I believe all clubs will do their best to abide by their rules.”
