Ooops. Somone’s golden cash cow seems to be hitting a dry spell.
News emerged today that UEFA’s top clubs accounted for losses of over 1.6 billion in Fiscal 2010; as the report in today’s Washington Post further asserts, accounts for 650 European Clubs revealed losses nearing 56 percent of revenue. Coincidentally, this was the last year before UEFA began monitoring via the Financial Fair Play regulations, so it’s also entirely possible that clubs were getting in one last year of spending to maybe make a run at the Chaaaaaampions League and increase their potential turnover.
Then again, it’s not as if FFP implementation stopped clubs from spending, either; the EPL, for example, saw transfer fee spending up 33 percent to 485 million GBP this past Summer. And Manchester City created its famous stadium sponsorship dodge specifically to circumvent these rules. Add in other clubs like PSG and Queens Park Rangers recently getting on board the rich owner gravy train, and it’s looking like, as some have already surmised, “Fair Play” will just enable the rich to get richer, especially as owners leverage their club’s debt so as to set up a golden parachute for when they grow bored of their new toy.
This also doesn’t bode well for UEFA President Michel Platini, recently all but named as successor to the FIFA Presidency by sitting President, Technologist and Women’s Football Enthusiast Sepp Blatter, as it shows the once enviably profitable UEFA on a slippery financial slope. Bear in mind also that it was Platini who pushed so hard for such a toothless set of regulations in the first place.