'How will Chelsea & Manchester City be allowed in the Champions League with their crazy spending?' - reader questions on Uefa's Financial Fair Play rules answered
Goal.com invited readers to ask our chief correspondent about the new rules coming into force next season, and how they might impact upon spending throughout Europe
Following on from Goal's series of features on Uefa's new Financial Fair Play (FFP) rules, we invited readers to ask chief correspondent Wayne Veysey about European football's governing body's plans and how they will affect clubs' spending.
FFP will come into effect on June 1 and is designed to prevent teams from falling into financial oblivion, with the intention that all clubs across the continent will be breaking even in three years, though there are still plenty of questions surrounding how exactly it will impact teams and their transfer plans.
@thestrettyender: What do they mean by not spending more than they earn? Does that mean we'l never see a transfer for more then 80 mil quid?
Wayne Veysey: No, not at all. e.g, if Real Madrid negotiate a series of bumper commercial & media contracts, or sell a few £20m players, it can happen.
A club can technically spend £100m on a player if they earn enough revenue to do so (e.g from commercial sources or transfers)
@faizarsyadw: so clubs are still allowed to do crazy signings unless it's not from the chairman's investment but from revenues?
WV: Yes, that is right. If Real Madrid earn £200m a year from bona fide commercial deals, they can go transfer mad.
Some of the rich clubs have considerably larger revenue than others. Real, Barca & MUFC stand out.
@philim88: so in other words you can only spend what you bring in have i got this right??
WV: Nearly. You can lose an aggregate €45m between 2011-14 & €30m between 2014-17 if funded by a lender (eg Sheikh Mansour)
@NourAgha: What if two clubs announce a transfer deal for a certain value, and exceed it secretly where one club continues to pay the other.
WV: All financial accounts are audited by independent experts & have to be available to Uefa experts too
@obumosigwe: How will Chelsea and City be allowed to play in the Champions League next year with their crazy spending?
WV: FFP is phased in from next month over a period of 3 years. The first possible exclusions from CL or Europa League will be in 2014/15 season
@mohza: what punishments do clubs face if they do not meet the rules? and won't most clubs just find 'loop holes' around these rules?
WV: The ultimate sanction is exclusion from Euro competition. Uefa admit there are loopholes but team of Swiss accountants have drawn up rules
@swagadore: Apparently there are 29 loopholes around it.. Someone read the full document. how robust does he think it'd be & How is it robust
WV: I believe it is robust but might need adjusting as market conditions change & clubs find loopholes you suggest. Uefa can't be too draconian.
@I_Am_Tzar: how does it affect the likes of City and Chelsea? Wage budget and transfers
WV: Considerably. There's no way either will be spending £100m on players this summer unless they have something up their sleeve or a fire sale
@wandile32: the FFP is targeting foreign bosses then tell us what the motion behind this initiative? City are the ones who will suffer most.
WV: Uefa strongly deny FFP is targeting PL clubs. They want to curb football's financial excesses - £1bn losses across 660 top div clubs in 2009
@BennetDladla: do you honestly think uefa would exclude teams like man u, chelsea,barce, madrid, inter if they ALL didnt comply with the FFP?
WV: As an absolute last resort, yes I do. Otherwise, the rules are meaningless & Uefa lose all credibility
@jonnyno1: can you explain how this rule influences wages
WV: Top players will still get top wages but there will be less money swimming around football pool so there will be -in effect- a soft wage cap
@andyh_75: is Uefa legally allowed to impose financial limitations and spending on clubs?
WV: Uefa is the governing body. It makes the rules. 27 clubs have not been given a licence to play in Euro competition in last 5 years
@raeez7: How does a debt-laden club affect the FFP?
WV: Clubs must (nearly) break even. If lender (eg Abramovich) fund club, then €45m aggregate losses allowed over next 3 yrs. €30m loss 2014-17
@TimSmith18: will small clubs or big clubs benefit more from the rules in the long term?
WV: The well-run clubs will benefit, large or small. I predict a small narrow of gap between rich & poor. But MUFC, Real etc will still rule
@andyh_75: also what stops say Man City owners buying their own products, VIP tickets etc to increase revenue?
WV: Uefa have a panel of experts to investigate this. Anything much above market value (eg naming rights) will set alarm bells ringing.
@MHD_Rashed: can clubs reject these rules ? and isn't it possible they can create their own rich clubs' league?
WV: The rules have been unanimously approved. Uefa say all the clubs want this. No chance of breakaway league at this point
@mekus_b: What punishment awaits clubs who do not adhere to the new Uefa rules?
WV: Ultimate sanction is clubs will not be given a licence to play in Champions League or Europa League
@Frank_Bear: this is just a Bosman for the CL. All that'll happen is transfer fees will come down and wages go through the roof?
WV: Interesting thought but I don't agree that transfer fees will go down. Wages will only go up for tiny elite
@ScouseFutbolCS: I can see a massive loophole already, City's owners could use their company to give City a mega shirt sponsorship deal
WV: Yes, but FFP rules say it cannot be above 'fair value'. Thus, there will be no £40m a yr deal (more like £10m), which means FFP is working
@Gbeng10434: wat happens if a team that spends so much is unable to generate enough,will they be allowed to take loans to buy players
WV: This is one possibility, yes. A ban on buying players is certainly one sanction the FFP panel can enforce
@borgeh1: why not uefa introduce wage and transfer cap instead.so that no transfers exceed a certain fee and wages.to be reviewed annually?
WV: Uefa say the whole point is not to punish players or teams but just introduce more financial discipline
@aleem21010: how will it affect new signings? Will top players take pay cut to move to new clubs?
WV: Very possibly. I expect squads will be trimmed and there will be a greater spread of talent
@mdescotes: Will this not also greatly affect mid and lower table teams who are trying to grow without CL and huge media deals?
WV: If they're living within their means, they should benefit. e.g a Stoke will be playing a Chelsea who have had to rein in spending
@todanik: dont you think this will only bring back the idea of the breakaway series mentioned some few years back?
WV: Because the Champions League is the king. It would require quite a few top clubs failing FFP for parallel league to happen
@Vescucci: Will the repercussions be enforced at all or there's likely gonna be compromises? Has such a breach and due punishment ever occured?
WV: Yes. Uefa have refused licences to 27 clubs over last 5 years eg. Mallorca in Europa League this season
@saminda14: what does the new rules means for Man Utd debts??? will Utd be able to spend in summer.....
WV: Yes, MUFC will be able to spend. Their debts must be reined in l-term & a no. of methods could do this (e.g Glazers sell or put cash in)
@reubenevans: why can't Sheik Mansour give his mate 100m to put towards advertising... on city's shirt. No reason to disclose the money trail?
WV: Yes, there is. Uefa experts will inspect such wrongdoing and demand evidence to justify such a deal. If none, then punishment
@DON_SMILEY: is there an actual limit to what a club can spend now ? Is there a limit on the players wages?
WV: There are no limits on spending or wages. If Real or Barca can justify buying Fabregas for £80m, via revenue stream then no problem
@Swagadore: It doesn't take into account all finances though, I heard. So If Roman wants to build a new stadium for the club he can do that.
WV: Yes, that is correct. Stadium expenditure & youth development do not count towards FFP
@jackwidnell: are there any English clubs that would have failed over the last three years?
WV: Loads. 14 out of 20 PL clubs, I believe, would have failed over last 3 yrs if the rules had been in operation
@agscuderia: don't you think ultimately fans will suffer. Higher prices for tickets, merchandise, membership and almost everything.
WV: There is that fear, yes, and in many ways it is justified. But if fans are taken for granted, they stay away eventually.