Uefa set to approve finance plans 15/09/2009 |
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Plans to force clubs to balance their books is set to be approved at a Uefa executive committee meeting on Tuesday.
Uefa president Michel Platini has been pressing for measures which would ensure clubs live within their means.
He wants to prevent clubs from spending more than they make from their revenues and prevent billionaire owners investing huge amounts of money.
The plan has already been approved by the European Club Association, which represents Europe's clubs.
Uefa says the plans, which would come into force in 2012, could see Europe's top clubs being banned from the Champions League if they do not curb their spending.
Uefa believes the spiralling inflation of transfer fees and players' wages cannot be sustained.
Some of Europe's major clubs are carrying debts counted in hundreds of millions, with Real Madrid estimated to be in the red by £500m at the end of the 2007/08 season.
Now, Uefa wants to limit clubs to spend only what they earn from football-related income such as ticket sales and television deals.
Platini, who says the measures are backed by owners including Chelsea's Roman Abramovich, added that an independent panel would be set up to judge whether clubs had broken the rules.
Uefa is also concerned with the influence of wealthy owners coming into the game.
The new measures would mean owners such as Manchester City's Sheikh Mansour bin Zayed al Nahyan would not be able to make huge gifts of cash to their clubs.
Uefa would also look at losses incurred by clubs' parent companies who have to service loans, said Platini.
England's Premier League brought in new financial rules this week, which includes the requirement of each club to provide annual accounts by 1 March every year to show that it does not have outstanding tax debts, or debts to other clubs.
(Source: BBC Sport)
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