Spending has always been part of the modern game. Its undeniable that a clubs success is based on how much money and power they have when it comes to their wealth. So it comes as a surprise then that Manchester United, one of the worlds richest football clubs, plan to limit the amount of spending, depending on how much a club earns. This is reported to cap the amount of money, big clubs like Chlesea and Manchester City are allowed to spend during transfer periods. The issue is set to be discussed by the Premier League for the first time.
The proposal stipulates that Premier League clubs should be subjected to sanctions if they spend more than they earn. The proposal echoes the Financial Fair Play rules UEFA are set to introduce next season for clubs competing in the Champions League and Europa League.
These financial controls could essentially leave clubs being forced to break even every year or risk facing penalties.
Those that stand to loose from this proposal are clubs like City and Chelsea who at the moment, seem to spend big every year despite the club running at a loss. According to City’s last published accounts in 2011, the club made a loss of £197m. Chelsea lost £68m in the same year, while United made a £12m profit, despite them being heavily in debt following the takeover by the Glazer family.
Its not just Manchester United that are pro for this policy. There is strong support from other clubs for the proposal to come to light from clubs such as Wigan and Arsenal. An argument could be made that the proposal favors clubs like Manchester United and Arsenal that are without wealthy benefactors prepared to spend big in the transfer market.
Manchester United’s chief executive David Gill has been one of the driving forces behind UEFA’s financial fair play rules and he wants the Premier League to follow suit. The discussion is set to take place with two groups of 10 clubs, each with a diverse proportion to size and region, are set to discuss the options in more detail today.
David Gill has said, “A lot of clubs would be happy just to introduce the financial fair play regulations into the Premier League now, some wouldn’t, but that’s a debate that has to have happened. And it will happen.’
There will be no decision in the short term, yet Manchester United and their representatives believe that it is a step in the right direction.