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
EU Transfer System Must Be Reformed, Report Says
Gaurdian, February 7th, 2013 12:13PM

MOST READ
TAGS:  fifa

MOST COMMENTED

A new study from the European Commission has put forth a series of proposals regarding the reformation and regulation of the transfer system in European soccer. “Professional soccer has recently been confronted with a financial crisis in spite of strong income growth," the report says, adding that the inflated transfer fees paid for superstar players are contributing to a looming debt crisis in European soccer.

Its recommendations for change include: capping transfer fees at 70 percent of a player’s gross salary for the entire period of his contract; regulating buy-out clauses as well as the loan transfer system; the establishment of a limit on the number of players per club; a “fair play levy” on transfer fees beyond a certain amount that trickles down to less wealthy clubs; and addressing the issue of third-party ownership of player contracts.

Since the 1995 Bosman ruling, which allowed players to move freely within the European Union once their contract had expired, European clubs’ collective annual transfer spend has increased from $541 million to $4 billion in 2010-2011, a rise of 744 percent, the report says. Of course, that money is concentrated on a very small number of clubs that can afford to buy players at inflated prices. Many clubs take on more and more debt to buy top players, but the report warns that if they gamble incorrectly, and lose a key revenue stream like the UEFA Champions League the following season, some might not be able to service their debt any longer, meaning they would have to go into bankruptcy.

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
World Cup Boosts German Beer Sales    
The World Cup is credited for boosting German beer sales by 4.4 percent in the year's ...
Glazers Selling selling 8 million Man United    
The Glazer family will make around $150 million by selling 8 million shares of its stake ...
Former Palestine Midfielder Killed in Bombing    
Former Palestinian national team player Ahed Zaqout has been killed by an Israeli bomb that hit ...
Neymar Aims to Be Fit for Barcelona Opener    
Brazilian star, Neymar, who fractured a bone in his back following a challenge from Colombia's Juan ...
Mourinho: Lukaku Lacked Motivation    
Chelsea coach Jose Mourinho, after his club sold 21-year-old Belgian striker Romelu Lukaku to Everton for ...
Former Zambia Boss Takes Ivory Coast's Helm    
Frenchman Herve Renard has been appointed coach of Ivory Coast, replacing Sabri Lamouchi, who left after ...
Steven Gerrard: 'Every Person Slips'    
Steven Gerrard says the slip that arguably ended Liverpool's title hopes and England being knocked out ...
La Liga Champ Eying Chicharito    
Mexican striker Javier Hernandez, who started just six Premier League games for Manchester United last season ...
No Charges for Moyes Over Bar Incident    
Former Manchester United coach David Moyes is in the clear after he was investigated over an ...
West Ham Acquires Ecuador World Cup Striker    
West Ham has finalized a $20 million transfer of Ecuador striker Enner Valencia from Mexican club ...
>> Section 2 Around the Net Archives