Monday, May 18, 2015

UEFA chief Michel Platini thinks Financial Fair Play rules that saw Manchester City fined £49million could be eased in June

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
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
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
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.' 

FINANCIAL FAIR PLAY 

Introduced in 2011 by UEFA, Financial Fair Play's aim is to prevent club's spending money outside their means at an unsustainable rate. Teams have to balance expenditure on wages and transfers with income from commercial avenues and success on the pitch.
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
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
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
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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