Platini Backs Football League Financial Plans Monday, 13th Jun 2011 17:00
UEFA president Michel Platini has backed the Football League’s move to adopt UEFA’s Financial Fair Play framework at last week’s summer conference. Chief executive Simon Clegg represented the Blues at the conference, which was held in Cyprus.
Football League clubs agreed to develop measures which will lead to a ‘break-even model’, meeting the objectives of UEFA’s framework.
League Two clubs already operate what’s called the Salary Cost Management Protocol (SCMP) which limits player wages to 60% of turnover, which they will reduce to 55%, while League One clubs will also adopt the SCMP.
Championship sides have opted to move towards the introduction of “new regulations to be developed and approved” by the beginning of the 2012/13 season.
Platini welcomed the developments: "We are very happy to see that Football League clubs, under the umbrella of The FA, are again taking the initiative on good governance issues by introducing Financial Fair Play.
"We are delighted that enlightened football bodies across the continent are trying to restore financial sanity to football on a national level, just as we are trying to do on a European level."
Town’s accounts to June 2010 showed player and coaching costs of £13.45 million, which was 85.3% of turnover. Overall staffing costs were 108.1% of turnover.
Phil, can you clarify. Does this mean total wages have to amount to 60% of turnover, or just player wages have to be 60%? Without knowing that, it is hard to work out how close we are. Also, what counts within turnover? Presumably parachute payments would be included within this.
This sounds like brilliant news for football, but I guess it will take away our Marcus Evans advantage as we'll have to live off turnover rather than the money of a rich backer. We'd better get promoted quick!
One of FIFA's better ideas and long overdue. Just those rascally Premiership clubs now who have to get their act together. My only criticism of this is that it still leaves the big city clubs having more clout. They generally always did have of course, but TV exposure and the age of "following" a team that has caught your imagination from watching TV rather than supporting that which is or was your local club, together with huge overseas fanbases TV creates, still distorts things and widens the gulf between the Premiership and the rest.
With reducing crowds, and therefore income, this could prove a great problem for Ipswich. Folk speculating on new players, and high wages, need to consider this seriously. Looks like there will be more emphais on the youth system in future.
Interested to find out what impact a rich owner will have on this i.e. how much they can "invest" for players.
About time too. As a football fan, who happens to support Ipswich, this is long overdue and should help stabilise finances in the game. So no more rich benefactors like ME, well good. This means clubs living within their means whatever their ownership. It also means that supporters will be in far less danger of losing their beloved clubs through reckless spending anddebt accumulation. It might even mean more clubs becoming community or supporter owned and if thats good enough for Barcelona, it be very happy to see it at ITFC.