Join Now  | 
Home About Contact Us Privacy & Security Advertise
Soccer America Daily Special Edition Around The Net Soccer Business Insider College Soccer Reporter Youth Soccer Reporter Soccer on TV Soccer America Classifieds
Paul Gardner: SoccerTalk Soccer America Confidential Youth Soccer Insider World Cup Watch
RSS Feeds Archives Manage Subscriptions Subscribe
Order Current Issue Subscribe Manage My Subscription Renew My Subscription Gift Subscription
My Account Join Now
Tournament Calendar Camps & Academies Soccer Glossary Classifieds
EU Transfer System Must Be Reformed, Report Says
Gaurdian, February 7th, 2013 12:13PM
Subscribe to Section 2 Around the Net


MOST READ
TAGS:  fifa


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
Vieira: NYCFC and Man City to Share Player Development    
When New York City FC finally takes the field as MLS's 20th team in 2015, it ...
Reports: Mourinho, Ancelotti to Move Once La Liga Ends    
According to reports in Spain and England, Real Madrid will unveil Carlo Ancelotti either on the ...
Florent Malouda: Chelsea's Costly Scapegoat    
Florent Malouda will pocket just over $6 million this year without having kicked a ball in ...
UEFA to Give UCL Spot to Europa Winner     
A new UEFA ruling will see the winner of its Europa League given an automatic berth ...
Schweinsteiger: Bayern Healthier and Better Than Last Year     
Bayern Munich is keen to shed the losers' tag it carries into Saturday's UEFA Champions League ...
Lampard: Blues Fans Had Every Right to Criticize Benitez     
Chelsea vice captain Frank Lampard, who recently inked a one-year contract extension with the club, said ...
Report: Seedorf to Replace Allegri at Milan    
Following his end-of-season meeting with AC Milan vice president Adriano Galliani, Massimiliano Allegri refused to confirm ...
Neymar off to Europe after Confed Cup?    
Neymar's transfer to somewhere in Europe appears imminent. According to reports in Spain and Brazil, the ...
Pellegrini Confirms Malaga Departure    
Manchester City target Manuel Pellegrini on Wednesday has confirmed that he will leave Mlaga at the ...
Report: Holden Gets Bolton Extension     
U.S. international Stuart Holden has agreed to a new one-year deal with current club Bolton Wanderers, ...
>> Section 2 Around the Net Archives