Europe's clubs face plan to link expenditure to income

Big-spending clubs could face curbs on how much they pay for players' wages and transfers under proposals being considered by the game's lawmakers and European sports ministers.

The move would hit clubs subsidised by rich owners - such as Chelsea - as they would not be allowed to spend more than they earn. The idea has been mooted as part of a new Europe-wide licensing system after the possibility of a salary cap was abandoned.

The sports minister Richard Caborn, who attended a meeting in Brussels yesterday involving the governing body of European football, Uefa, ministers and EU officials, said: "It was recognised that a strict salary cap would be unworkable but it was broadly agreed that there should be some proper relationship between income and expenditure.

"The details have not been worked out yet - this was the first discussion. There were five sports ministers involved so politicians and football are working together very closely on this."

Clubs would not be allowed to spend more than they earn on transfer fees and players' wages but they would be allowed to borrow for capital investments such as new stadiums or training grounds. The proposals will now be formalised in the review of European football being carried out by Jose Luis Arnaut, a former presidency minister in the Portuguese government.

It will not be easy to gain the support of the clubs, however. G14, the grouping of elite European clubs which includes Arsenal, Manchester United and Liverpool, considered imposing a ceiling of 70 per cent for the proportion of revenue that could be spent on wages. That never became a formal rule for members, though, and was just a voluntary recommendation.

The Football League have introduced a rule for League Two clubs where only 60 per cent of revenue can be spent on wages, and are having a trial for the same rule in League One.

Taken from the article by Martyn Zeigler for The (Red) Independant

Full article can be read here

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