Spanish League backs UEFA's financial fair play regulations

By Andrew Warshaw

July 14 – Spanish football officials are setting up a crack monitoring unit to make sure none of their clubs fall foul of UEFA’s financial fair play regulations.

The Professional Football League (LFP) in Spain has approved new rules designed to curb excessive spending by clubs in the country’s top two divisions.

Under the terms of the deal, a committee of independent professionals will be established to analyse accounts and recommend possible sanctions for clubs that fail to abide by the rules.

“We are not immune from the wider economy,” LFP president Jose Luis Astiazaran told Reuters.

“The current situation means we the clubs must regulate ourselves.

“This is a journey that starts now and ends in three years, with the aim of striking a balance between revenue and spending, regulated with the creation of a control department.

“The wish is to foment more financial discipline and rationality and we will try to encourage clubs to operate taking their own capacity into account.”

Spanish clubs have been increasingly susceptible to financial difficulties, plummeting into administration as they try to keep pace with the leading elite whilst not having the same marketing strengths and rich benefactors as, say, the English Premier League.

Racing Santander became the latest club to seek protection from creditors, joining fellow La Liga clubs Real Mallorca and Real Zaragoza, as well as all three teams promoted to the first division at the end of last season – Real Betis, Rayo Vallecano and Granada – in administration.

A study released by Barcelona University indicated the 20 clubs in the top flight of La Liga made a combined net loss of €100 million (£88 million/$142 million) in the 12 months to June 2010.

Although the Premier League in England has yet to adopt UEFA’s blueprint domestically, the new regulations are already beginning to have an effect.

Last month, the 72 English clubs below the top flight agreed to sign up, with Championship clubs allowed only to spend what they earn from the 2012-13 season and teams in Leagues One and Two not permitted to spend more than 55 per cent of their turnover on player wages.

Clubs who transgress are likely to be handed a transfer ban as a first sanction with possible points deductions for major offenders.

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