Europe's big spenders have been given the green light to carry on
after UEFA president Michel Platini admitted the current financial strait
jacket on clubs 'FINANCES has not
worked.
Clubs like Manchester
City and Paris Saint-Germain have sustained heavy fines and had spending
restrictions imposed under the current Financial Fair Play, which limit the
size of financial losses.
But UEFA, after pressure
from big clubs who have had their spending curtailed, including City, PSG and
the two Milan giants from Italy's Serie A, are planning changes that allow them
to spend them more freely.
UEFA president Michel Platini (centre) is expecting a change in the rules regarding Financial Fair Play
Manchester City manager Manuel Pellegrini has had to contend with FFP sanctions imposed on the club
Platini told French radio station RTL that the FFP rules could be changed as swiftly as next month
Clubs with super-rich owners will be allowed to make greater losses as long as
the INVESTMENT to cover
them is ring-fenced.
UEFA president Michel Platini said:
'The world is two-faced but we will say this openly: I think we'll ease things
... It will be the [UEFA] executive committee who will decide if it is to be
eased or something like that, and the outcome will be known by the end of
June.'
Clubs with super-rich owners will be allowed
It was a year ago this week that
City were hit with a £43m FFP fine for overspending, as well as having transfer
limits imposed and Champions League squad restrictions, although two-thirds of
the fine was suspended. That meant they were limited this season in buying
players and had their wage bill capped.
But it now looks like the brakes
will be off and if they want to make a £200m-plus bid for Lionel Messi,
Cristiano Ronaldo or any other superstar, new-look FFP will make it easier.
City's owner Sheik Mansour has a
personal fortune estimated at around £17billion although he has theoretical
access to an Abu Dhabi sovereign wealth fund of £493bn. PSG's owner Qatar
Sports INVESTMENTS have
access to sovereign funds of £194bn.
Platini suggested key Italian
involvement in the lobbying for change, saying: 'The Italians wanted [FFP]
eased.'
A source familiar with private
lobbying of UEFA by clubs who want to spend freely, says: 'UEFA know FFP has
helped to reduce some costs in a beneficial way. But they can also see the
point that the richest clubs are becoming locked into dominant positions and
any club outside that group has a shrinking chance of ever competing. Allowing
more INVESTMENT could alleviate that.'
CIty were hit with a £49million fine for failing to abide by Financial Fair Play rules last season
Paris Saint-Germain, who won the French league over the weekend, were also fined by UEFA last year
Platini (left) is expecting there to be an announcement in June regarding any altercations to the FFP rules
One factor forcing
UEFA's hand is an ongoing legal threat by clubs wanting to have FFP watered
down. Jean-Louis Dupont, the lawyer leading the legal action, said: 'We welcome
the announcement of a change in the rules in line with the demands expressed by
our clients in their various legal actions.'
Watering down the rules
is sure to leave some clubs furious, not least Arsenal and Liverpool, owned
respectively by Americans Stan Kroenke and John W Henry, both men who supported
FFP and cost controls. Neither club would comment.
UEFA general secretary, Gianni Infantion, said: 'Any potential changes to the existing regulations will
look to encourage more growth, more competition and market stimulation while
strengthening the emphasis on controlling spending and safeguarding financial
stability as our objective is and remains to ensure the sustainability of
European club football.'
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