EastStandBlue
Life President
- Joined
- May 29, 2005
- Messages
- 15,519
Inside the Observer this morning is a great article by David Conn on the financial problems that many of the EPL clubs are facing now and how the worlds richest league is effectively rotting from the inside.
Brings up a lot of important points, including one that UEFA have seemingly snuck through. As of the 2012/13 season, any club that operates at an enormous loss, has mountainous serviceable debt or requires extreme funding from a financial backer will not be allowed to compete in european competition. It's part of their fair play initiative and it does seem geared to hinder English clubs and their business plans.
I'd love to see how Platini and his men will differentiate as to what is an "enormous" loss and what is a regular loss, though. Manchester United and Liverpool have been lumbered with their debt on the back of leveraged buy-outs... Real Madrid would never be in such a position because they are at least part-financed by the Spanish government. Whilst it's not official, whenever needed they've taken interest free loans from the Spanish Bank. Same goes with AC Milan, would they have conquered all in the 90's if it wasn't for Burlesconi?
The articles here: http://www.guardian.co.uk/football/blog/2010/jan/17/premier-league-owners
Brings up a lot of important points, including one that UEFA have seemingly snuck through. As of the 2012/13 season, any club that operates at an enormous loss, has mountainous serviceable debt or requires extreme funding from a financial backer will not be allowed to compete in european competition. It's part of their fair play initiative and it does seem geared to hinder English clubs and their business plans.
I'd love to see how Platini and his men will differentiate as to what is an "enormous" loss and what is a regular loss, though. Manchester United and Liverpool have been lumbered with their debt on the back of leveraged buy-outs... Real Madrid would never be in such a position because they are at least part-financed by the Spanish government. Whilst it's not official, whenever needed they've taken interest free loans from the Spanish Bank. Same goes with AC Milan, would they have conquered all in the 90's if it wasn't for Burlesconi?
The articles here: http://www.guardian.co.uk/football/blog/2010/jan/17/premier-league-owners
