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Joined: Jun 2011
Posts: 8,791
1st Team Squad
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1st Team Squad
Joined: Jun 2011
Posts: 8,791 |
Liverpool could have almost £7m of Champions League prize money withheld pending a UEFA inquiry into a possible breach of Financial Fair Play regulations, an exclusive in The Times claims.
The Reds would usually expect the payment to be made next month, but that is now in jeopardy after the club posted losses of £49.8m for the 2012-13 financial year, after a loss of £41m for a 10-month period through to May 2012.
Under FFP rules, clubs are not allowed to post a loss of more than £35.4m over a three year period.
Clubs that did not qualify for the Champions League or the Europa League last season (Liverpool finished seventh in 2012-13) were not required to submit financial details for 2011-12 and 2012-13 to UEFA's monitoring body, but having qualified for the Champions League last season, they are now subject to FFP regulations.
The Times report, written by the newspaper's European football correspondent Gabriele Marcotti, quotes Andrea Traverso, head of Club Licensing and Financial Fair Play at UEFA as saying: "As soon as a club qualifies (for a UEFA competition), it enters the scope of Financial Fair Play,"
"So they have to immediately submit all the information to UEFA."
Earlier this year, Manchester City and PSG were fined €60 million (£48.9 million) for breaching UEFA’s financial fair play rules, while having their squad size for this season’s Champions League capped at 21 players.
Turkish club Galatasaray plus Russian sides Zenit St Petersburg and Anzhi Makhachkala were amongst those who suffered lesser punishments.
The likes of Roma, Monaco and Inter Milan could also fall into similar difficulties as Liverpool, as they did not qualify for Europe last season, so are having their accounts analysed for the first time.
While UEFA only allows a €45m loss over three seasons, the rules in the Premier League give a lot more leeway, with a loss of £105m permitted over a three season period.
OUR VIEW
This may not be as bad as it seems. Liverpool may well have their payment held back while an investigation is pending, but their case at any inquiry could be strong. UEFA makes special allowances for "virtuous" expenditure, including investments in the club such as infrastructure and youth development, meaning Liverpool could claim that their total loss over the two seasons in question is a lot less than the above figures and potentially below UEFA's threshold of £35.4m. Another point worth mentioning: last season, 76 clubs were “at risk” of breaching the regulations, yet only nine were sanctioned in the end. Liverpool should take heart from that.
Sign Reus
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Joined: Oct 2009
Posts: 27,628
Liverpool Legend
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Liverpool Legend
Joined: Oct 2009
Posts: 27,628 |
Don't you think it's unsustainable that with unprecedented sponsorship money flowing into the clubs absolutely mind blowing sums that the clubs themselves make huge losses ? The answer is simple the money is in and straight out of the clubs again to players and agents. The model of a football club as a speculators investment is I think unworkable even if revenues increase by say club pay per view the players will demand more. The only workable solution I feel is clubs run by consoriums as marketing shells. That's the real question here we have to ask why we are in this position as are the other clubs
IF YOU WANT TO BE HEARD SPEAK SOFTLY - BOB PAISLEY
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Joined: Jun 2009
Posts: 22,394
Liverpool Legend
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Liverpool Legend
Joined: Jun 2009
Posts: 22,394 |
The answer is more simple. Increase ticket prices to get more revenue 
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Joined: Oct 2009
Posts: 27,628
Liverpool Legend
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Liverpool Legend
Joined: Oct 2009
Posts: 27,628 |
The answer is more simple. Increase ticket prices to get more revenue I have an idea lets refurbish Anfield rather than build a propoer long term stadium that allows us to compete with our main rivals and lets sign decent (but not great players) or hopefulls which turn out to be not hopefuls at all and are moved on at a loss. Sound like a plan ?
IF YOU WANT TO BE HEARD SPEAK SOFTLY - BOB PAISLEY
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Joined: Jan 2010
Posts: 22,926
Liverpool Legend
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Liverpool Legend
Joined: Jan 2010
Posts: 22,926 |
Liverpool could have almost £7m of Champions League prize money withheld pending a UEFA inquiry into a possible breach of Financial Fair Play regulations, an exclusive in The Times claims.
The Reds would usually expect the payment to be made next month, but that is now in jeopardy after the club posted losses of £49.8m for the 2012-13 financial year, after a loss of £41m for a 10-month period through to May 2012.
Under FFP rules, clubs are not allowed to post a loss of more than £35.4m over a three year period.
Clubs that did not qualify for the Champions League or the Europa League last season (Liverpool finished seventh in 2012-13) were not required to submit financial details for 2011-12 and 2012-13 to UEFA's monitoring body, but having qualified for the Champions League last season, they are now subject to FFP regulations.
The Times report, written by the newspaper's European football correspondent Gabriele Marcotti, quotes Andrea Traverso, head of Club Licensing and Financial Fair Play at UEFA as saying: "As soon as a club qualifies (for a UEFA competition), it enters the scope of Financial Fair Play,"
"So they have to immediately submit all the information to UEFA."
Earlier this year, Manchester City and PSG were fined €60 million (£48.9 million) for breaching UEFA’s financial fair play rules, while having their squad size for this season’s Champions League capped at 21 players.
Turkish club Galatasaray plus Russian sides Zenit St Petersburg and Anzhi Makhachkala were amongst those who suffered lesser punishments.
The likes of Roma, Monaco and Inter Milan could also fall into similar difficulties as Liverpool, as they did not qualify for Europe last season, so are having their accounts analysed for the first time.
While UEFA only allows a €45m loss over three seasons, the rules in the Premier League give a lot more leeway, with a loss of £105m permitted over a three season period.
OUR VIEW
This may not be as bad as it seems. Liverpool may well have their payment held back while an investigation is pending, but their case at any inquiry could be strong. UEFA makes special allowances for "virtuous" expenditure, including investments in the club such as infrastructure and youth development, meaning Liverpool could claim that their total loss over the two seasons in question is a lot less than the above figures and potentially below UEFA's threshold of £35.4m. Another point worth mentioning: last season, 76 clubs were “at risk” of breaching the regulations, yet only nine were sanctioned in the end. Liverpool should take heart from that. What I am not sure of, is up until which year the 3 year period is considered and I understood that it is supposed to be the year the club plays in Europe (as they would be getting revenue from EUFA only in that year), ie, the current financial year and 2 years before that. If my assuption is correct, it would mean that the 3 years under consideration would be a loss of 49.8m for fin year 2012-2013, year 2013-14 results which are not out but I would expect a profit and year 2014-15 results which should be even better with CL revenues, so over 3 years we should be within the allowed loss. Otherwise, we will need to have done 55.4m of profits last year for us to be within limits (may be 45m if adjustments are made wrt infrastructure expenditure). Making such profits is impossible on last year alone and therefore the clubs would have been aware already, this is why I am more or less confident that we would not be penalised, though I am not certain.
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Joined: Apr 2013
Posts: 135
Under 16 Player
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Under 16 Player
Joined: Apr 2013
Posts: 135 |
FFP is a complete misnomer and will have the exact opposite effect of it's stated aims. In reality it will enforce the status quo. Even if a club like say Atletico is successful they will not be able to compete with the big boys financially until its business develops to a point that it can rival their income. Success on the pitch will not level the playing field off the pitch so to speak.
The bottom line is the big clubs will continue to outspend their rivals and other smaller successful clubs will not be able to compete with them financially until that success is monetised. So unless LFC can capitalise on it's fading brand quickly the status quo in terms of financial muscle is here to stay.
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Joined: Dec 2009
Posts: 2,886
Under 23 Player
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Under 23 Player
Joined: Dec 2009
Posts: 2,886 |
A wage cap is long overdue. There is no winning with the current state of play. More commercialisation thus more profit, more TV revenue even more profit and then players screaming for £400,000 a week instead of £300,000!
Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master.
George Washington
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Joined: Jan 2010
Posts: 22,926
Liverpool Legend
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Liverpool Legend
Joined: Jan 2010
Posts: 22,926 |
A wage cap is long overdue. There is no winning with the current state of play. More commercialisation thus more profit, more TV revenue even more profit and then players screaming for £400,000 a week instead of £300,000! Yep, totally agree, but should be in the whole of Europe. This is what Platini should do. However, not sure if employment laws would allow this.
Last edited by vish LFC; 23/09/14 02:32 PM.
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Joined: May 2009
Posts: 37
Trialist
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Trialist
Joined: May 2009
Posts: 37 |
For me you can stick FFP, only one winner here, the Scum. Biggest generator of money in the game. In this day and age that means domination, all scum fans must be praying for this to be enforced, as soon as it is, we may as well all switch to another sport remembering the great year that was 13 / 14, because they will just buy all the best and win everything.
LFC will only compete with them by a sovereign gov buying the club and creatively getting around FFP.
The money ball experiment that we are experiencing will not succeed against the legitimate buying power of those F?cks.
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Joined: Jan 2010
Posts: 22,926
Liverpool Legend
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Liverpool Legend
Joined: Jan 2010
Posts: 22,926 |
For me you can stick FFP, only one winner here, the Scum. Biggest generator of money in the game. In this day and age that means domination, all scum fans must be praying for this to be enforced, as soon as it is, we may as well all switch to another sport remembering the great year that was 13 / 14, because they will just buy all the best and win everything.
LFC will only compete with them by a sovereign gov buying the club and creatively getting around FFP.
The money ball experiment that we are experiencing will not succeed against the legitimate buying power of those F?cks.
Indeed, competing with them will be very complicated as their revenue is twice ours. I don't even think the sovereign govn model will work as we have seen with City and PSG being fined, they spent much less in the last window. That said, the only clubs that has the potential to come close to Manure is us and Arsenal (only because of their 60k seater in London). Anyway Manure can only field 11 players and their debt level is still an issue. Our only way out is success on the field and more corporate seats built at minimum cost. A sovereign owner will no doubt make things easier, but who is interested? I don't know. What is on the critical path of success right now is CL qualification at the end of the season and hopefully BR got his 117m transfer right.
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