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
Wealthy clubs grapple with financial fair play
New York Times, September 26th, 2011 5:35PM

MOST READ

MOST COMMENTED

Will high-spending clubs like Manchester City run afoul of new laws designed to restrict spending by especially rich owners of soccer teams, such as Manchester City, which since being bought in 2008 has spent hundreds of millions of dollars on players in addition to the hundreds of millions paid to acquire the club?

According to news reports, cumulative losses in European soccer surpassed $1.5 billion in 2009 alone. Manchester City reported losses totaling $190 million for the 2009-10 season. Its city rival, Manchester United, recently delayed a proposed stock offering on the Singapore Exchange designed, in part, to reduce approximately $500 million in outstanding debt.

A new initiative called Financial Fair Play has been implemented, explains Jere Longman. With a two-year phase-in period, it is designed to rein in runaway deficit spending and provide long-term stablity. Teams will be allowed to spend only the equivalent of what they generate from so-called soccer-related income: broadcast rights, ticket sales, merchandising, competition prize money and corporate sponsorships. Is that a mandate that can, and should, be adopted?

Its legality may be questioned and tested in court. Sheik Mansour bin Zayed al Nahyan, a member of the royal family of the emirate of Abu Dhabi, paid $330 million for City in 2008 and has spent hundreds of millions more on players. That's an expensive business model, yet last spring brought City its first trophy -- the FA Cup -- in 35 years, and via a third-place finish a spot in the lucrative Champions League group phase.
 
“If a wealthy owner wants to put his own money into his own business, how is that not money devoted to football?” said Stefan Symanski, co-author of the book, "Soccernomics," and a professor at the University of Michigan. “When I go to a game, I take my money and buy a ticket and it becomes football income. When it transfers from the bank account of an Arab sheik, why isn’t that the same thing?"

Read the original story...


No comments yet.

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




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Section 2 Around the Net
Sporting Demands UCL Replay     
Sporting Lisbon has lodged a formal complaint with UEFA demanding a replay of its UEFA Champions ...
FIFA Rankings: USA Falls to 23rd    
Jurgen Klinsmann's USA fell six places to 23rd in FIFA's international rankings following a pair of ...
Diego Costa Released from the Hospital     
Chelsea is expected to be without striker Diego Costa when the Blues visit Manchester United at ...
Reports: Ibra Suffers Injury Setback     
Reports in Sweden claim that Zlatan Ibrahimovic could require surgery on the heel injury that has ...
FIFA Backs Clasico Pause for Messi's Record     
Lionel Messi heads into Saturday's game against Real Madrid at the Bernabeu just one goal short ...
Allegri: Juve Can Still Qualify    
Massimiliano Allegri believes Juventus still has a good chance of qualifying for the Round of 16 ...
Mertesacker: Gunners Lack Confidence    
In a candid interview, Arsenal center-back Per Mertesacker admits that the Gunners are low on confidence ...
Rodgers: Why Always Balotelli?     
Once again, it was all about Mario Balotelli, as Liverpool coach Brendan Rodgers fielded a barrage ...
Report: Demand Amps Up Ahead of El Clasico    
This Saturday's Clasico between Real Madrid and Barcelona, which regularly draws hundreds of millions of viewers ...
Ferguson: Moyes Didn't Inherit Declining Man United    
Alex Ferguson has updated his book My Autobiography to include a section about the short reign ...
>> Section 2 Around the Net Archives