Football

Premier League: How to solve financial problem

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People worry about clubs becoming too reliant on money. Teams like Chelsea, Manchester City, Real Madrid and Paris Saint-Germain are known for splashing the cash - but how do we stop them?

Well, UEFA's Financial Fair Play technique is what is needed. The basic summary of Financial Fair Play is that you're not allowed to spend more than you earn and make a financial loss; any team that announces an annual loss is instantly taken into administration, and all debts must be paid before a certain deadline.

This could be covered by sale of the club's top players, degradation of stadium and many other methods. The owner is not allowed to contribute; this defeats the point of Financial Fair Play.

As soon as the loss is announced, the club are deducted points. If the debt is not repaid before a certain deadline, the club is taken into liquidation, and a vote is held. Clubs will vote whether to keep the club in the league, or whether to relegate them. If relegated, the club must apply to the next league, and keep going down. This is familiar; it happened to Scottish titans Glasgow Rangers a few years ago.

This would mean that, at the new year, Liverpool (£50m), Chelsea (£49.4m), Manchester City (£52m) and Tottenham Hotspur (£4.3m) (amongst several other clubs) would be in administration. Just imagine this: Liverpool could have been forced to sell Luis Suarez, Manchester City Yaya Toure or Sergio Aguero. Some Premier League giants could be relegated. This shows how financially inadequate football has become.

Going into other leagues, PSG would be in £107m debt; sale of Ibrahimovic and Silva on the cards. Financial Fair Play could destroy teams who spend too much. Michel Platini must introduce it at once.


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Premier League

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This article has been written by a member of the GiveMeSport Writing Academy and does not represent the views of GiveMeSport.com or SportsNewMedia. The views and opinions expressed are solely that of the author credited at the top of this article. GiveMeSport.com and SportsNewMedia do not take any responsibility for the content of its contributors.

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