These new UEFA rules

[magneto]

Does anyone understand the new rules? In layman's terms what does it mean?

[Cunny]

David Conn in Guardian

 

City and Chelsea struggling big time to comply.

 

A bit on us

 

 

The £35m Liverpool's US owners, John W Henry's Fenway Sports Group, agreed to pay for Andy Carroll, and £23m for Luis Suárez, do not fall into the same category, as they are largely accounting for the £50m the club received for Torres. So Carroll's transfer is the most eye-catchingly excessive, probably ever, yet does not rock the Premier League or Uefa equilibrium like the Torres deal because Liverpool are mostly spending out of income

.

[Powelly]

What happens if they break the rules? Lose points?

[magneto]

Make this a sticky perhaps?

 

 

TEAMtalk breaks down UEFA's new financial fair play rules, some of which could have a huge effect on Premier League clubs.

 

- Clubs could be banned from European competition from the 2014/15 season onwards if they do not comply with the new rules.

 

- Clubs could be banned from European competition from the 2014/15 season onwards if they do not comply with the new rules.

 

- The rules state clubs must break even over a three-year period - ie not repeatedly spend more than they earn.

 

- Club owners will be allowed to put in up to 15million euro a year but only as equity, not a loan. This figure will then drop to 10million euro annually.

 

- Clubs will be able to spend as much as they want on stadiums, training facilities and youth football.

 

- UEFA will have a range of sanctions from warnings to a transfer ban to exclusion from European tournaments.

 

- Across Europe, total club income in 2009 rose 4.8% to 11.7billion euros (£9.7billion) but expenditure was a 9.3% increase to 12.9billion euros (£10.7billion), making a 1.2billion euro (£1billion) deficit.

 

- Most of the expenditure goes on player wages and one in three European clubs spent 70% or more of their income on salaries.

 

- More than half of European clubs - 56% - ended 2009 in the red.

 

- One in four clubs spent £6 for every £5 they earned.

 

- A drop in transfer activity has reduced income by 5% to clubs in Scotland, France, Portugal and Holland.

 

- English top-flight clubs are comfortably the richest in Europe with average revenue of 122million euros (£101million) - five times higher than Holland and Russia. Germany is second with average earnings of 86million euro (£71million).

 

- Scottish top-flight clubs' average revenue in 2009 was 16m euro (£13.3million), the Republic of Ireland's 1.3m (£1.08m), Northern Ireland 0.7m (£580,000), Wales 0.3m (£250,000).

 

- Clubs will be monitored if there are warning signs such as: recording a loss in any year; spending more than 70% of revenue on wages; having overdue football-related payments or tax debts; high level of debts.

 

- As with a tax declaration, the onus is on the clubs to provide the correct information to UEFA and they will be subject to spot-checks and face sanctions if they do not do so.

 

- National associations will initially grant the licences but UEFA will have spot-checks to make sure that the rules are being applied correctly.

[RP]

There's been a thread on the front page for over ten days on this.