UEFA are onto something..

Soldato
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http://www.telegraph.co.uk/sport/main.jhtml?xml=/sport/2008/05/18/sfnpb1118.xml
Its a few days old, but I hadn't heard anything about it until now.

When Platini spoke to me in Manchester last week, he was at pains to stress there was nothing anti-English in the long campaign he envisaged against debt, an enemy of footballing fairness once described by the former Uefa chief executive Lars-Christer Olsson as "economic doping".
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More and more, debt can be seen as one of football's worst influences. It creeps up while our eyes are closed, as I was reminded a few years ago after Dundee, the club dearest to my heart, reached the Scottish League Cup final. We had players such as Claudio Caniggia, the Argentine World Cup finalist, whose wages an average home attendance of about 4,000 clearly could not pay. Later the club nearly folded and, though relegation ensued, it was far less shameful than the realisation that our trip to Hampden Park had been fraudulent in the sense that Dundee had got there by overcoming rivals whose books were balanced. The reflection that Rangers, who beat us, were even deeper in debt seemed irrelevant. That season no longer lives in the memory because, in effect, we cheated.
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The problem occurs when the clubs who run up huge debts always win - and that we must stop. Some clubs, and some leagues, have asked us to. We are preparing a plan that will encourage clubs to reduce their debts and give us clear, clean competition.
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If the strategy council resolves to eradicate debt, Uefa's executive committee will endorse it and only clubs with balanced books will be licensed to play in the European competitions

Seems a good idea in truth although I doubt it will ever see the light of day due to pressure against it.
 
Its a good point, but i wonder how many years it would take to actually come into effect. i doubt the big 4 would be eager to do so.
 
This would be far too hard to police with all the different accounting loop holes and club owners would just pour more money in and in the end the same teams would win.

The only realistic chance they have of implementing something like this would be some kind of spending cap per season. they are looking to implement something like this into F1 for similar reasons
 
Bankruptcy and recievership are the ultimate sanction against clubs that run up debt.

Looks at Leeds, Dundee (that's mentioned) and Gretna. All clubs that have paid the penalty for not balancing the books.
 
It's one reason I'm pleased that the Football League have a mandatory points deduction for going into administration. It disgusted me a few years ago that Leicester were allowed to write off so much debt without repercussions. For that reason, I was glad to see them relegated this year.

Sooner or later, we're going to have to accept that most football clubs must be run as a business rather than a plaything.
 
Dundee had Claudio Caniggia long before Di Stefano took over and properly ravaged the club with debt. Equally, Rangers are now in a much better financial situation - should they have been excluded from competition back then now that they can bring it round?

It would only be a case of making the rich richer and the poor poorer, that is for certain. Only Man Utd allowed to participate in the Champions League therefore gaining more fans and therefore gaining more money.

EDIT: Just read Giovanni di Stefano's wiki page, he was a defense lawyer for Saddam - what a ****.

EDIT2: Cannigia played for Dundee 2000-2001. Dundee went in to administration in early 2004 IIRC. Good reporting.

Manchester have tonnes of debt and loans.
 
it's only bad debt that's a problem, as long as a club/business is able to service their debt then it shouldn't be an issue. besides manchester united have very little debt, neither do liverpool. it's all on another companies books.
 
Arsenal are fine. They have managed debt for the stadium only.

Its still what £300m in the red - it may be managed (just like Man Utd) however doesnt mean any other business could be run like it

Its a good thing but it wont happen - and even if it does Im not sure if it could force present owners out, only not allow new owners to take over in the same manner


Manchester have tonnes of debt and loans.

Very true - however the yearly profits easily pay off the accrued debts over that 12 month period (and only helped more by League / Cup wins)

The only realistic chance they have of implementing something like this would be some kind of spending cap per season. they are looking to implement something like this into F1 for similar reasons

Not the same at all for many reasons - and its been a destriment to the sport imo
 
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The fact remains, the owners are in debt, although leveraged against the club. It is in the interest of any creditors for United to be competing successfully and bringing in revenue. Although the idea of anybody risking what is in effect an institutiion is not right, I cannot see how it is preventable. I imagine Uefa have in mind an audit of companies and individuals before sanctioning any sale, but in reality the issue with football is the ever escalating running costs due to wages.

What I would like to see is a wage cap based on normalisation for taxes in individual countries and a transfer fee cap with inflation factored into an annual increase. These two alone could help to prevent the risk/reward ratio which is driving away individual owners with passion for the club and introducting venture capitalists and large business who leverage the club against borrowings for the purchase.
 
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