Uefa introduces financial rules to attract investors

UEFA has presented new financial fair play rules easing restrictions on clubs in a bid to lure investors after a tough three-year campaign to cut skyhigh debt in the European game.

With Gulf state-owned Manchester City and Paris Saint Germain still feeling the pain of sanctions ordered last year, Uefa’s (Union of European Football Associations’) executive committee eased the rules at a meeting in Prague.

They will force clubs to give extra information on ownership but will also start new voluntary financial revival plans to allow clubs to avoid sanctions and to spend on players if they have a “plausible and conservative” business plan.

The new Uefa rules are clearly intended to attract investors.

Since the introduction of Financial Fair Play in 2011 clubs have basically been ordered to live within their means.

Uefa says clubs’ overall debt has been cut from billion (R23-billion) in 2011 to million (R6.6-billion) last year.

Uefa president Michel Platini insisted that the new fair play is “an expansion and a strengthening” of the rules. “The overall objectives of financial fair play remain the same. We are just evolving from a period of austerity to one where we can offer more opportunities for sustainable growth and development.”

But Uefa general secretary Gianni Infantino acknowledged legal challenges made against the rules and doubts raised by some clubs about the restrictions. “This is what we were hearing: ‘Why should we invest if it’s forbidden. If I invest I am in breach [of fair play and] there are consequences.’

“We are sure that these new rules will encourage investors to invest in European football because European football is the best product in the world when it comes to club football.”

Manchester City, owned by an Abu Dhabi state entity, and Paris St Germain, controlled by a Qatar government entity, have both recorded losses of more than million (R1.3-billion) in some seasons, leading to questions about how debts are covered.

In the past two years, Uefa has had fair play plans with 23 clubs including City, Paris St Germain, Inter Milan, AS Roma and Sporting Lisbon.

Dynamo Moscow have been banned from European competition next year while others have faced huge fines.

Four clubs have already left their fair play plans though and Uefa said it did not anticipate any new major cases.

The fair play rules have faced a legal challenge from Manchester City and Paris fans who got a Brussels court to block the implementation of a new phase of the existing rules.

Uefa’s legal counsel Alasdair Bell said however the governing body was confident the ruling would be overturned.

The fans and a players’ agent want to stop Uefa reducing the permitted deficit from million (R614-million) to million (R409-million).

Infantino insisted that fair play has been a success and “is really in the head of everyone: of every club manager, every coach, the players, the agents; everyone”. — AFP