I know nothing!
Michael Platini is not happy with the current state of Champion League teams, and is in an effort to limit England’s dominance over the CL group stages. He wants to control free spending English teams who try to hoist a Champions Trophy.
Platini and UEFA are singling out the big four, and will probably add Man City into the mix. The goal is to ensure that a club can pay off all debts and players obligations and still have liquid. Essentially, they need to have access to easy cash, and not long term obligations disguised as assets. What they won’t do is tying income to expenditures, which is good for some of these folks.
What Platini is leaving off is that the biggest spending teams in the offseason have not been the EPL Big four, but Manchester City (170 million pounds), as well as Real Madrid (270 million puonds!).
There is concern about debt, which is admirable, but at the same time, there is a reason for spending money in advance of success. The Champions League has some nice payouts if you make the final 32, and the return on investment is very very tempting. Especially since a report shows English teams domination Champions League winnings.
But never doubt the Daily Mail’s ability to pull the “those foreigners are out to get us”.
So, Citeh owners just give Citeh some ridiculous “sponsorship” that pays 100MM pounds every year or something like that. Seems like an easy way around the rule.
They clearly have no idea what is “fit and proper” in terms of the finances in football.
If they had any clue, they would have never allowed owners to buy teams with no cash down, high interest rates, and put all the debt on the club’s back.
Now they are trying to reverse the error in their ways, with this wacky new “fit and proper” test that will have to be passed. What would be the repercussions for failing the “fit and proper” test anyway?
Ban them from European comps, thus reducing their revenue steams, putting them in weaker financial position then they were already in?
Deduct points in the league, thus reducing their chances at revenue next year, by limiting their ability to quality for European comps?
What would happen to ManU/Liverpool/Arsenal if they missed out on Champs league money? Would they even be able to pay off the yearly interest on their debt?
They were asleep at the wheel, when they allowed all these teams to be purchased and put into UBER-debt, now they are trying to fix this mistake.
@TFA – Totally agree, this is filled with loopholes galore. What is stop any mega-rich owner, forgiving the outstanding debt as Roman could do?