UEFA warning ahead of financial fair play rules

[Robbie-9-Fowler]

chelsea lost £71 million in their last accounts. this set of accounts doesnt include the torres and luiz signings and ancelotti sacking which will affect the next set of accounts

Them loses will be counted at the year before FFP kicks in though from what I've read? Why wouldn't Luiz and Torres be counted in it either when the loses where from the end of April? Surely?

[Exiled_red]

I thought the first year of the assessment period started this summer just gone, meaning that the Torres and Luiz signings for Chelsea don't fall in to the assessment periods. I thought this was part of the reason why we signed Carroll last January rather than saving the money for the summer and making a move then.

[Lecter]

Them loses will be counted at the year before FFP kicks in though from what I've read? Why wouldn't Luiz and Torres be counted in it either when the loses where from the end of April? Surely?

It depends when their year end is

I think the point is they made massive losses that year without going mental in the transfer market

In their first set of accounts for FFPR they sacked Ancelotti, paid millions to get AVB, then sacked him and have spent very heavily in the transfer market last summer

Their losses will be huge still

[Lecter]

I thought the first year of the assessment period started this summer just gone, meaning that the Torres and Luiz signings for Chelsea don't fall in to the assessment periods. I thought this was part of the reason why we signed Carroll last January rather than saving the money for the summer and making a move then.

That wasnt the point I was making

My point was they made huge losses without spending massively in the transfer market

They spent heavily this year and had 2 changes of managers to factor in and all that will be included in the first FFPR assessment period

[Liverpool]

I'll stick my neck out and say there's **** all chance of Uefa banning either club from the CL.

yep they started off with good intentions but then **** it, it would be the spark of the clubs creating their own league, and with the contract between clubs/uefa ending in 13/14? theres no way theyd risk losing their million/billions over this fair play stuff

[Darkon]

Not sure if related to this yet, but apparently Besiktas have been banned from all European competitions because of financial reasons. Could be some other stuff, but interesting if it relates to this!

[Neil Young]

I wouldn't get your hopes up.

[Liverpool]

about 80 clubs are banned from euro comps each year, without looking it wont be ffp related

[Darkon]

that many really? I can hardly think of one except the club from Switzerland last year...

[Liverpool]

yep 99% of the time its no mark clubs noones heard of so doesnt get a mention

[ChesterDave]

Wasn't there a high profile scandal affecting a lot of Turkish teams about 6 months back? Fallout from that, surely.

[Darkon]

That was a match fixing scandal, and as far as I can see it has nothing to do with this.

So far it's just written that it's due to financial reasons. But it could be they are close to administration or something else of the like. Certainly can't remember they have spent crazy?

[Fernandinho]

Twitter rumours I read say its because of late transfer fee payments?

[Darkon]

Hmm, that was boring

[Chazza]

Premier League wages at an all-time high
The rise in player wages has reached record levels in the Premier League - a worrying trend with clubs now subject to Uefa's financial fair play rules.

The latest annual review of football finance by analyst Deloitte show the increase in wages outstripped the growth in revenues.

It has resulted in a wages/revenue ratio of 70 per cent in the Premier League - a record figure having crept up from the low-to-mid 60s five years ago.

Wages went up by £201 million in 2010-11 to almost £1.6 billion, a 14 per cent rise, and overall revenues rose by 12 per cent to £2.27 billion. This was mostly driven by a rise in income from the new TV deals, especially from overseas rights.

Alan Switzer, director in the sports business group at Deloitte, said wage control was paramount for good business.

He said: ''If the wages to revenue ratio is 70 per cent or higher it's very difficult to make an operating profit.

''In our view it is too high as a league and the clubs need to be edging back to the low 60s. Every 1 per cent that it drops should increase operating profits by £20m to £25m.''

The wage rises at some of the bigger clubs have been offset by significant rises in commercial income at some sides, including Manchester United, Liverpool and Manchester City.

The figures are for the 2010-11 season so are the last ones before Uefa start taking them into account for their financial fair play (FFP) calculations where clubs in European competition have to break even.

Switzer said Manchester City and Chelsea faced the greatest challenges in conforming to the FFP rules.

''Chelsea and Manchester City are the clubs which have recorded the biggest losses so they are the two which have the most to do, and to be fair to them they have been pretty public about needing to take action,'' he added.

''A significant number of clubs around Europe have some distance to travel on the road towards compliance.''

The Deloitte report does not cover the most recent season, but it does show the effect of the 50 per cent tax band coming into play - the 92 league clubs paid nearly £1.2 billion in tax, up 20 per cent.

The report also shows almost half of top-flight clubs had a reduction in matchday revenue reflecting the fact that many have been cautious about raising ticket prices during the current economic climate.

Other points highlighted by the report include:

Combined pre-tax losses among Premier League clubs were £380m, while transfer spending increased by £210m (38 per cent), to a record level of £769m.

Total revenue in the Championship increased by £17m (4 per cent) to £423m, partly caused by an increase in the solidarity payments from the Premier League.

The wages/revenue ratio in Championship clubs was an even-more worrying figure of 90 per cent.

The Bundesliga remained Europe's most profitable league with operating profits of £154m, a 24 per cent increase. In the Premier League, overall operating profits decreased by £16m to £68m.

Net debt in Premier League clubs fell by £351m (13 per cent) to £2.4 billion, the lowest level since 2006. Of that, 62 per cent (£1.5billion) is in non-interest bearing 'soft loans', most which relates to three clubs Chelsea (£819m), Newcastle (£277m) and Fulham (£200m).

http://www.telegraph.co.uk/sport/football/competitions/premier-league/9301961/Premier-League-wages-at-an-all-time-high.html