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The club that changed football
You wouldn’t know it from the behaviour of the last couple of days, but there is a new rule in football. A new rule that says that clubs must not lose more than €45m between 2011 to 2013 (which is about £46m at current exchange rates). So when Chelsea toddle off and spend around £80m in one transfer window on Hazard, Oscar, Marin, Azpilicueta and Moses you know that someone is not taking the matter seriously.
So where does Uefa stand in the face of this total rejection of the financial regulations? None of us really knows, although Platini said just yesterday of his FFP plans , “We wanted to revolutionise European football when we first introduced this idea. We are never going back on this.”
One interesting point is that Man City actually claim that they are not spending too much, since they are “sponsored” by their owners. Chelsea claim that they are ok because their owner actually lobbied Uefa to set up the new regs. Neither argument is holding any water at all; both clubs will fail to meet the FFP regs next year, unless they have a wholesale fire sale, and as Man C found in trying to do some Pest Control and get rid of Adebayor, it is not that easy to move pesky players on.
In all the debates on TV yesterday, as the transfer window ended, no one incidentally was talking much of Málaga, Rangers and Portsmouth, except Platini. But what he said was worth hearing, for in talking of such clubs Platini said financial disaster can follow massive spending in any club.
” I’ve spoken to Manchester City’s owners in Abu Dhabi, and everybody has given their commitment to this plan. Some aren’t necessarily showing it, but we have been very clear with them. We have put the structure in place to implement these rules. If clubs do not respect the rules, they will get into difficulty, whether they are from France, from Italy, from England, from Georgia …”
So will Uefa really deal with the big boys? One new rule (the overdue payment rule) is already in place and AEK Athens and Besiktas are already banned. Portsmouth were banned after winning the FA Cup, and Rangers are banned too. 27 other clubs are under investigation and also look like being banned. Real Madrid and Barcelona have both fallen foul of this in the past, although before there were banning orders associated with failing to pay football debts on time.
Platini’s speech and the record so far of dealing with clubs does indeed suggest that he is not willing to be seen as a man who will back off when faced by the might of the Billionaire Clubs, in Russia, along with Man City, Chelsea, PSG, and now perhaps Man U.
- The weekend’s games plus the transfers (if any)
- Who said project youth is dead?
- Do refs get told – don’t do Man U again?
- Remember 31 August 2011: five transfers in one day
- Champions League Draw
- Ref Review: Arsenal v Sunderland
- Next Gen, Wembley, Champs League
- Lee Probert, a total anti-Arsenal ref
- Chapman’s brilliance with wingers
- Arsenal v Marseille
I can understand Untold’s frustration with those responses that oppose his points because all these responses didn’t provide facts & evidences to justify their arguments or to make this debate more intelligent. To me, the objective of the FFP is simply to create a certain form of guidelines or regulations to ensure the long term sustainability of the sport (football) itself.
Frankly, any industry that is allowed to exist without being regulated is doomed to succumb to manipulation and ended with the systemic collapse of the industry per se. Thus, some kind of FFP is definitely needed, whatever the empirical parameters that may ultimately be used.
Coming to Arsenal, sometimes the words used in various comments whether in support or against the present practice, are so strong that they exaggerate the points or the arguments. If we had remain moderate in our utilisation of the words in our arguments, we could perhaps be nearer to the point of agreeing to disagree. My concerns on Arsenal are based on a few points. We have heard Arsene saying many times before that he always search for quality buys and he claimed that that practice do not necessarily means that the players must be expensive in order to be excellent. However, my fear on the present practice by the Club is that ‘ they are searching for cheap (affordable) players while hoping that those cheap players are actually quality buys.’ Because of this practice, we are seeing certain good buys as well as some flops. No names need to be mentioned here. And he’ll spend just enough to make me screaming out ‘pleasssse buy additional one or two more for assurance and depth (in certain positions)..’ But that’s Wenger for you..or that’s the Board for you..whichever way you chose to look at it, that’s life for you!! Anyway, now that the transfer window is officially closed, let’s close rank and let’s give our full support to our beloved club. Go Gunners!!!
I’ve heard alot of people brazenly claim that the FFP system will not survive legal challenge, be that in domestic law or European Law. It would be great if someone explained that – I don’t think it’s quite as simple as it’s made out to be!
What is certain is that many lawyers will assure clubs who are failing to meet the requirements that a legal challenge can be sustained, simply because it is in their interests to do so. Whether they are right or not remains to be seen. Things like these are such soap operas that it will probably take the legal system decades to resolve it, at enormous expense.
This aside (and I’m hardly surprised that football journalists/writers run screaming from the idea of discussing the legal side of this), I do not necessarily buy the curiously righteous arguments about FFP. There is nothing ethically wrong with investing money in a football club. It promotes competition, certainly. It allows fans to dream – without it you wouldn’t have a club like fulham, or a club like chelsea which, despite its meagre heritage, just won the European Cup. This is romance. This is why the PL is so marketable and profitable compared to Spain.
It is hardly surprising that Arsenal employees want FFP to succeed, but only because it stands to benefit Arsenal at other clubs’ expense. We will be the bullies, not the bullied (all the transfer shenanigans we so loudly cry about are the same ones we are guilty of when dealing with smaller clubs.)
I don’t buy Arsenal’s line on this; it smacks of the most sickening hypocrisy. You hear a manager bemoaning the financial effects of these wealthy football clubs, using words like ‘doping’ or ‘cheating’, acting like the principled socialist. Yet he is worth what 70-80m as a direct result of all this. ANd the club profits hugely from the PL machine.
I am an Arsenal fan, but I’m not a hypocrite.
Matthew, re 12.19
FFP only takes into account if the club are operating a certain way now and very recently,it has nothing to do with huge historic debt. It also depends what the debt is for.
Zdis, spot on.
Limpars wand,
Great comment but I think you’ve overlooked the loopholes built into FFP. Stadium debt, training ground development and a youth programme are all EXCLUDED without limits. If some billionaire wants to come along and pump a ton of money into a club, he can but in a sustainable and long term way. There’s a club in Germany where exactly this has happened, they play in a huge empty stadium because the owner poured cash into growing his own big club. Marcus Liebherr at Southampton was engaged in basically the same thing before his untimely death.
Off topic.. but how on earth was that not called a penalty for Norwich..
It was the most blatant shirt tug in the box you could ever see, yet somehow the ref didn’t see it?? boggles the mind.
Should be instant demotion for all officials missing something that obvious.
@ Tony,
Well I thought it was an interesting article.
I like when you write about topics outside of Arsenal. Shows that we’re not obsessed with just our team. We are in a league of twenty but competeing in Europe means we have to know what’s happening there too. It’s important.
For anyone who thinks some teams are too big. Just ask a Rangers fan if on hindsight they would have preferred the SPL to have stepped sooner and stopped what happened to their beloved club.
How many fans would follow Chelsea,Man.U or City if they were punted into the Conference?
Arsenal seems to get vilified for trying to make sure the club has a long term stable financial future. I’ve followed Asrenal for Twenty three years now. I’d like them to still be in the top flight for the next twenty three.
This summer we’ve brought in what I think are good players that will get even better playing for Arsenal.
Much prefer that than the let’s buy the most expensive players because we can.
Berbatov just got sold for 4m. He cost Man.U 30m plus wages that’s 110,000 per week. Total 58m.
At least when we sell Asrenal try and recoup some of the money they’ve spent. Not lose 54m. On one player.
No wonder the others keep on loosing money. Adebayor, Anelka etc etc etc.
I know who I’d rather have running my club.
@ logsee
“Mr Usamov come save my club?”
NO THANKS. He’d just burden it with debt
.
The Guardian wrote in an article this summer ” the billion dollar trophy” that’s exactly what it cost Man. city to win a trophy.
Gooner for life.
From Wikipedia:
European Union support for FFP
On 20 March 2012 it was announced that UEFA and the European Commission had signed a joint agreement intended to prevent clubs using the EU legal system to challenge the validity of FFP, for example by claiming that it conflicted with anti-competition legislation.[147] This was an important step because for clubs in countries which are part of the EU, the European Court is the highest authority (above even a nation’s own supreme court) and the ultimate channel by which FFP might be challenged legally.
The European Union – who acknowledged the unique “specificity of sport” in the Treaty of Lisbon – policy on sport stated “good governance in sport is a condition for the autonomy and self-regulation of sport organisations”.[148] The vice-president of the EC and the Commissioner for Competition Joaquin Almunia confirmed that the existing FFP rules were both valid and in accordance with European legislation, saying; “I fully support the objectives of UEFA’s FFP rules as I believe it is essential for football clubs to have a solid financial foundation.”
UEFA president Michel Platini said: “Our statement confirms that UEFA’s Financial Fair Play regulations are fully consistent with EU State aid policy. The rules will protect the interests of individual clubs and players as well as football in Europe as a whole”
UEFA general secretary Gianni Infantino said: “Let us be clear, this is not a new law … if anyone was thinking of filing some sort of complaint saying FFP somehow restricts European competition law they would have to file it to the Commission. This is a big milestone in the enforcement of the break-even principle”[149]
@tony
Worthless shares?
You may want to send George Soros an email on his 2% stake
Norwegian Gooner, I am much obliged. I went to a game this afternoon so didn’t get round to posting anything further on this topic, but that was certainly the bit that needed posting.
Tony and Norwegian Gooner,
Am I right in thinking that Arsenal have (up to) £50m that they could spend on players (on fee and salaries) without putting themselves in debt and without breaking the FFP rules? Furthermore am I right in thinking that Arsenal don’t spend this money however because if they fail to qualify for the CL, that money (or a good chunk of it) will be needed to compensate for the drop in income during the following season? Which of course therefore will prevent them from going into debt at the wrong time.
Fishpie. I have no idea of how much monney Arsenal have avaliable for players, but based on comments from the club, we will have no financial worries If we dont qualify for CL for one season. But it would of course be hard to get back in, specially If we dont have the monney or dont spend them carefully, just take a look at Liverpool.
When I see a typical fan screaming for Wengers head or the board to go, what I see is just a frustrated fan shooting from the hip. I have been there, but mostly because of his extreeme patience with some players I saw absolutly nothing in. Senderos and Almunia. I think Wenger has and still is changing a lot for the better and that we should be very happy to have a professor in economy as our manager while FFP is implemented.
@ Norwegian Gooner 5.44
Great, thanks, I hadn’t been following the politics. Whilst it is reassuring, it is certainly not conclusive. It will be challengeable, and the ultimate decision will, as you say, rest with the ECJ. Thankfully the noble intentions of the policy makers you quoted are subjuect to judicial scrutiny! If ever punitive measures are taken by UEFA under these regulations, you can bet there will be a long and arduous legal battle, and one of the arguments submitted will address the legality of these provisions.
@ Woolwich Peripatetic
I’ve heard these questions of interpretation being addressed by UEFA and I seem to remember them claiming they have a large amount of discretion and flexibility when it comes to dubious attempts to circumvent the regulations. Things like examining the deals to see how they compare to the market. Again, I’m not sure how much of a problem it will be for UEFA to deal with such ‘loopholes’, but they seemed pretty confident from what I remember.
Dear Tony
This is one of the best articles I’ve ever read and it was just on time!
(as these spending club fans are testing our nerves by their reticules manner of talking)
I am confident on that Mr Platini will do something, because if they do not act to change things now, the whole system is going to crash
I want to see how Platini will act against any of the these: MU/MC/Chelsea/Barcelona/RM for fallig foull of the ffp. If it is nato,then we will be back to square or round one.
I don’t think UEFA will dare ban any of the big teams out of fear they will from their own cartel.
Then Wenger’s hopes of ffp will go up in smoke. You never know.
FFP does not have a cat in hells chance of succeeding to the degree everyone might wish. The big spenders will continue spending..find a way around it and if and when FIFA try to enforce them fortunes will be spent on lawyers to argue the case. It all boils down to how much money each party has….Mr Chelski et al have far more than FIFA.
@Dino Abby, but, in effect, at no one in particular:
I think it’s reasonable to think that the money Wenger doesn’t spend now is saved for later. If our budget for transfers amounts to £50m, and we spend £40m while recovering some £50m via player sales, it means that we have saved £10m and generated £50m in revenue. What happens next is anybody’s guess, but I think about a half of the money generated can be put into new acquisitions.
But the questions is: what acquisitions in particular?
Defensively, we don’t seem to need new players at all. We have 4 regular CBs, with at least two more coming through the ranks (Miquel and Eastmond or Hajrovic); we have two fullbacks apiece, with one on either side coming through within the next 2 years (Bellerin, Angha).
In the midfield, we’re quite stacked. Defensively, we can work with Arteta, Coquelin, Frimpong, but also Yennaris and possibly Henderson and/or Ebecilio. If Diaby’s out, we can use Wilshere, and maybe Henderson or Eastmond (if Chamberlain is not above doing defensive duties). If Cazorla’s out, there’s Rosicky, Chamberlain, ramsey, and the Eisfeld.
On the wings, we can use Gervinho, Podolski, Walcott, Chamberlain, Arshavin, and then also Gnabry or Watt.
The only position where we’re not stacked is CF. If Giroud’s off, we can use Podolski and then Walcott, but the farther we go, the less suited to the position the players become. Can we use Akpom if need be? Or recall Afobe? OR maybe use Arshavin? That’s our main weakness right now.
Why is it important to realize this: because most of the fans whinging about Wenger’s apparent inactivity toward the end of the transfer window usually demanded other positions to be filled. They called for new defenders; fullbacks; midfielders; playmakers; wingers; but only a handful realized the only position we would do good to strengthen was CF.
But the problem is – it’s not us who make the selection, but Wenger; and he could have a very different idea. Like he had when so many people were clamoring for us to buy M’Vila. But it’s fairly clear now that we don’t need him at all! So perhaps Wenger’s right again and we don’t NEED anyone at all – perhaps any new buy now would be surplus to our needs, an unnecessary cross to bear? I believe it should be fairly clear whether Wenger’s strategy was smart before the end of September.