Uefa wants clubs to break even in the next 2 seasons.

hawker

hawker

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So what do you guys make of the news that Uefa wants all clubs to break even within the next 2 seaons?

Personally I think it's a great move!

It will stop clubs from living beyond their means, and end this craziness that current surrounds football re:funds.
 
Man U will not break even in the next 20 yrs! So there goes that idea.
 
Good in theory but in practice its going to mean lots of fixing of the books and make it even harder for those not currently in the cl to get into the cl.
 
UEFA are almost as demented as FIFA. 2 years? How the hell are clubs with over 500 million pounds worth of debt going to break even in 2 year? A more realistic approach would be 5 - 10 years...
 
Football has huge debt problems. I don't really see any quick fix to reduce the retarded spending. Salary caps work wonders in the USA but it only works because their is only really one 'major' league per sport. If one European league brought in a cap, players would simply move to a different league. A good idea, but it will take way more than 2 years to happen.
 
Somehow I don't think breaking even has anything to do with debt levels... Economics 101 anyone?
 
millennia said:
UEFA are almost as demented as FIFA. 2 years? How the hell are clubs with over 500 million pounds worth of debt going to break even in 2 year? A more realistic approach would be 5 - 10 years...
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You can have debt, but still break even.

Like if you a buy a house yes? Say your bond loan is x, now each month you pay off x + interest. Now you earn Y. If Y = X + int then you have broken even, but you still have debt.
 
Hawker got a link to your claims ? I would really like to see if they say anything about Stadium debt, cos you cant pay for a stadium upfront, those things pay themselves off over time.
 
UEFA's response was that this is only the beginning, that it is a rolling plan designed to help clubs, not hurt them, and that debt per se is no problem as long as those debts don't translate into a trading loss. In theory, UEFA will outlaw loans to cover losses which, from 2012-13, can go no higher than 45 million euros over the first three years cumulatively and no higher than 30 million euros over the subsequent three years.
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So can have losses initially for 6 years...
The first time theoretically that a club could be banned or excluded over the new break-even requirement would be the 2014-15 season. "We expect a significant reduction not in the volume of transfers but the amount spent," said UEFA's head of club licensing Andrea Traverso. "Clubs will have to adapt their strategies, that's for sure."
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I count 4 season, not 2? 10-11,11-12,12-13,13-14... Anyways i think this is a good plan and 4 seasons is a good time to get your finances in order. I still think they need to add a clause on stadium building, as even though you build an asset, you make massive losses to Labour costs etc and other costs which the stadium will usually make up over time.

Wonder if a player can be classified as an asset if insured for full transfer value?
 
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