By David Gold at the President Wilson Hotel in Geneva
September 6 – Continually buying new players is not “rational”, Karl-Heinz Rummenigge warned today as the European Clubs Association (ECA) endorsed UEFA’s financial fair play rules after its annual Congress here.
The rules are designed to ensure that teams break even in the long-term, with this season being the first set of accounts that will be analysed by UEFA, who will look at three years of rolling accounts to determine whether a club meets its provisions.
In the first three years of the rule, teams are allowed to make a loss of up to £40 million ($64 million/€46 million) overall, but this figure will eventually become zero, and clubs who break these rules will be kicked out of UEFA competitions.
Bayern Munich and ECA chief Rummenigge said: “We had a meeting in 2009 and we voted to support Financial Fair Play then.
“We have to do everything in favour of [the initiative].
“UEFA informed that more than 60 per cent of all professional clubs are losing money.
“This is proof that the UEFA measures are right.”
Some clubs, particularly those owned by foreign owners who have spent heavily, are in danger of failing to comply with the regulations.
Manchester City posted significant losses last year, though a new sponsorship deal with Etihad could go some way to stemming their shortfall.
A number of other clubs, including Chelsea, Malaga and Anzhi Makhachkala, have spent significantly in a bid for success.
Teams in Spain are particularly vulnerable, with debt problems in La Liga spiralling out of control in recent years, and six clubs in the division currently in administration.
“We have to come back to the rational way,” Rummenigge continued.
“If some clubs need help we are ready to help them.
“Buying, buying, buying is not rational.”
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