Financial fair play regulations

Hi,

Does anyone know if the financial fair play rules UEFA are introducing are in FM11? E.g. you cant spend more than you earn over a 3 year rolling period or risk not being eligible for europe?

If so, has anyone come a cropper because of them??

The rule hadn't been fully established when FM11 came out. I dare say it will be in FM12.

There will never be a financial fair play rule in football, unless each team has equal financial spending budgets. All that this UEFA rule will do is help prevent ambitious smaller clubs from getting bankrupt.

No one can say that a Blackpool can spend as much as Man Utd or Chelsea as they cant earn more than them over a 3 year rolling period.

Erm, there is going to be a financial fair play rule. It's linked to being in profit over a three year period. So long as your income is high enough you can spend more.

Has already been passed through UEFA and agreed by most of the big clubs throughout

Comes into effect next summer (and even this season is taken into account)

Has already been passed through UEFA and agreed by most of the big clubs throughout

Comes into effect next summer (and even this season is taken into account)

I think you wrong there. It "starts" season 2011/12...and they calculate over the next two seasons, so EUFA will not perform any punishments until the end of 2013/14 I imagine.

I think you wrong there. It "starts" season 2011/12...and they calculate over the next two seasons, so EUFA will not perform any punishments until the end of 2013/14 I imagine.

Can you imagine what man city will have to do in the next two years to 'balance' £120million tranfer spend?

Wouldn't Ambramovic' money count as income?

Wouldn't Ambramovic' money count as income?

no because his earnings are separate from Chelsea as a business.

no because his earnings are separate from Chelsea as a business.

Although there was talk that last time this came up there would be a loop hole that would allow rich owners to 'buy' the club debt in the form of shares and thus make this entire process irrelavent - I hope they have closed this hole now.

I think you wrong there. It "starts" season 2011/12...and they calculate over the next two seasons, so EUFA will not perform any punishments until the end of 2013/14 I imagine.

Technically, parts of it are already in effect, but won't be fully implemented until 2013 (break-even starts in 2012)

Reading the regulations, it shows to assess the previous three financial years

However, it shows an exception (which I missed the first time leading me to wrongly believe this season would be looked at)

When the break-even requirement is first assessed (during the 2013/14 season), it'll only asses the previous two financial years (2012 and 2013)

After-that it's a three year period - 2014/15 will assess 2012,2013 and 2014 for example

Full documentation can be found on the right column

http://uk.uefa.com/uefa/footballfirst/protectingthegame/financialfairplay/index.html

http://swissramble.blogspot.com/2010/10/how-manchester-city-could-break-even.html

Is a wonderful article of the whole issue of Man city coming into line with UFEA plans for financial fair play. I know there are lots of 'ifs' in the article but it shows how their losses could be wiped out so they are profitable by the time the rules come into place.

I also wonder why no one has mentioned that owners are able to cover up to £37mil losses each year (for the 3 years) which then reduces every year.

Although there was talk that last time this came up there would be a loop hole that would allow rich owners to 'buy' the club debt in the form of shares and thus make this entire process irrelavent - I hope they have closed this hole now.

i guess that could be a risk but there are not many chairmen in that situation, man city yes, chelsea im not so sure, would he pump millions into the club now? they havent spent big in a few seasons and dont seem to have the same finacial clout as before, i guess he maybe has already tried to take the club in line with the new rules, out with them there are not many super rich chairmen in european football, a few in russia and ukranie prob, i think shaktar are super rich.

Well I can think of a few clubs it will affect. In the uk qpr will find it hard, as well as man city. You are right about Chelsea, but abramovic did right off a £150 million pound loan last year (I think) so that it wouldn't be hanging over the club when this rule came in.

It will affect both Milan clubs and a few other serie a clubs with rich chairmen. It will really affect real who are effectively bank rolled bt the Madrid council + also places like shaktar as you said.

It shouldn't be a problem for most clubs, just the Man citys of the world could struggle with it. I dare say there will be some loopholes in the rules though

Well I can think of a few clubs it will affect. In the uk qpr will find it hard, as well as man city. You are right about Chelsea, but abramovic did right off a £150 million pound loan last year (I think) so that it wouldn't be hanging over the club when this rule came in.

It will affect both Milan clubs and a few other serie a clubs with rich chairmen. It will really affect real who are effectively bank rolled bt the Madrid council + also places like shaktar as you said.

Barcelona may struggle to come into line with these rules as well, they have made horrendous losses in recent years

You are right about Chelsea, but abramovic did right off a £150 million pound loan last year (I think) so that it wouldn't be hanging over the club when this rule came in.

Thing is, will it?

If it's a donation (aka. income) then surely it'll be ok?

Nice loophole right there tbh, but it is money given without need of paying back, especially since it cleared a huge debt

Thing is, will it?

If it's a donation (aka. income) then surely it'll be ok?

Nice loophole right there tbh, but it is money given without need of paying back, especially since it cleared a huge debt

He exchanged the debt for equity in the club, basically saying the club is worth £150 million more than I bought it for and thus I now 'own' more of the club than I did before.

Do you think this will be included in the January patch?

I hope not, last time they introduced a new feature in a patch (Premier League Registration rules last year) that went about it completely the wrong way and made it really annoying

Stupid rule made to protect the status quo in Europe, and to make sure it's even harder for smaller clubs to break into the Champions/Europa league.

Stupid rule made to protect the status quo in Europe, and to make sure it's even harder for smaller clubs to break into the Champions/Europa league.

How do you work that out? The only way this could affect a smaller club is if the smaller club got a rich owner who spent millions on it, thus it would no longer be a small club. Surely?

This will restrict (if it works) the big clubs from spending big on money that comes to them from a non-footballing way, which is only right. For me, this will compress the field and mean that the big clubs are still big, but cannot spend silly money anymore.

I hope not, last time they introduced a new feature in a patch (Premier League Registration rules last year) that went about it completely the wrong way and made it really annoying

How did it make it really annoying? the only thing that I remember happening was that the non-registered u21s had random squad number each game - that was hardly annoying.

Maybe "really" annoying was too strong, but it was annoying too me and others for sure

Maybe "really" annoying was too strong, but it was annoying too me and others for sure

hahah - I wouldnt have personally ranked it as more than 'vaguely off-putting'. It was hardly a game-breaking issue, now thats annoying.

Immersion killer would be an appropriate term, but is annoying to quite a few people lol

Barcelona may struggle to come into line with these rules as well, they have made horrendous losses in recent years

No they havent, they are just in debt due to borrowing but they arent operating at a loss. They are the 2nd richest club in the world in terms of income. Think of Real Madrid, richest club in the world but with stupid amounts of debt (far more than Man U) but they make so much money that they will never, ever operate at a loss. Whats funny is these people who latch on to the fact that Barca, Real etc have debts and are skint and close to going under. It will never happen.

No they havent, they are just in debt due to borrowing but they arent operating at a loss. They are the 2nd richest club in the world in terms of income. Think of Real Madrid, richest club in the world but with stupid amounts of debt (far more than Man U) but they make so much money that they will never, ever operate at a loss. Whats funny is these people who latch on to the fact that Barca, Real etc have debts and are skint and close to going under. It will never happen.

well this article says a bit different

http://news.bbc.co.uk/sport1/hi/football/europe/8859257.stm

anyway i never said they would go under at all, very little chance of that happening, but they are struggling financially hence why they have decided for the first time ever to have a shirt sponsor much to the disgust of their supporters

well this article says a bit different

http://news.bbc.co.uk/sport1/hi/football/europe/8859257.stm

I remember reading that article, and others that say that barcelona definately lose money every year.

And saying they are the 2nd richest club in the world is slightly disingenuous as the only reason that real and barca are above united is that the pound dropped against the euro/dollar last year and as all clubs are put into one currency united suffered a huge drop in income, despite making more £ than they had the previous year.

With the Euro having a nasty drop during this year, I susspect that united will definately top the list again this year.