Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America Classifieds
Paul Gardner: SoccerTalkSoccer America ConfidentialYouth Soccer InsiderWorld Cup Watch
RSS FeedsArchivesManage SubscriptionsSubscribe
Order Current IssueSubscribeManage My SubscriptionRenew My SubscriptionGift Subscription
My AccountJoin Now
Tournament CalendarCamps & AcademiesSoccer GlossaryClassifieds
Europe on verge of soccer meltdown?
by Paul Kennedy, February 19th, 2009 7:01AM

MOST READ

MOST COMMENTED

[EUROPE]
UEFA president Michel Platini issued a dire warning that European soccer was on the verge of a financial meltdown if measures to curb spending on salaries and transfers aren't implemented. Speaking to the European Parliament, the former French star said the sport could "financially implode" if members of the European Club Association, which represents 137 leading teams, don't come around. He pointed out that American sports leagues were better positioned to handle the worldwide financial crisis and European clubs needed to learn from their example.

Platini's comments came after efforts to impose a salary cap was rejected by the European Club Association.

"European clubs are currently telling us that our system is in danger of financially imploding in the medium term," Platini said. "We are currently looking at the idea of limiting, to a certain degree, a club's expenditure on staff -- salary and transfer fees combined -- to an as yet undecided percentage of its direct and indirect sporting revenue."

Platini has proposed that clubs "would not be allowed to spend any more than 50 to 60 per cent of revenues" on wages and buying players -- revenues meaning money received only from ticket sales, sponsorship, merchandise and television income, not from the financial investment by owners or major shareholders.

"For the past 15 or 20 years, we have grown tired of hearing that there is no need to regulate, that the market regulates itself perfectly, that excesses and imbalances will disappear of their own accord," Platini said. "We now know that none of this is true. In football, as in the economy in general, the market is incapable of correcting its own excesses, and it was not the UEFA president who said so, it was Barack Obama."

Platini spoke of the American model where "sports competitions are only attractive if they are well balanced and if no one team possesses the ultimate weapon. The American sports system can certainly give us food for thought. It is completely different from the European model of sport in a number of fundamental ways. There are nevertheless some lessons that we can learn.

Platini's rules would only immediately affect clubs participating in UEFA competitions such as the lucrative Champions League and the UEFA Cup, but they would by definition cover Europe's biggest clubs.



No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Soccer America Daily
Business Reporter: Union teams up with Dogfish Head    
The Philadelphia Union will open to a new destination beer garden with Dogfish Head Brewery at ...
Columbus switches USL PRO affiliations    
The Columbus Crew will team up with the Austin Aztex to send players from its first ...
Lee Nguyen: Sitting back is not in Revs' DNA    
The New England Revolution tied an MLS record when it scored nine goals in its first ...
What They're Saying: Jerome Valcke    
"It is easy to destroy a reputation, it takes one second, it takes years to build ...
Champions League scenarios: 11 teams for five spots    
Eleven teams have qualified for the knockout stage of the Champions League, and 11 more teams, ...
Video Pick: Bend it like Uesato    
Our favorite free kick goal of the week comes from J-League 2, where Consadole Sapporo's Kazumasa ...
Breaking down the NCAA Division I women's quarterfinals    
The NCAA Division I Women's Tournament moves into the quarterfinals with three games on Friday and ...
A back-heel sombrero from Greek boy     
[VIDEO PICK: Skills] Greek youth soccer, in a game between AO Ioannina and Agia Eleousa, delivers ...
What They're Saying: Jose Mourinho    
"Obviously they must be very sad with the result but when we lose against a team ...
Report: W-League champion Pali Blues are folding    
The LA Blues won W-League titles as the Pali Blues in 2009, 2009 and 2013 and ...
>> Soccer America Daily Archives