UEFA released the fifth edition of the Club Licensing Benchmarking Report for the financial year of 2011. The report analyses and comments on the financial development of the European football clubs.
According to UEFA, Europe’s top divisions suffered record aggregate losses of more than $2.3 billion for the financial year ending in 2011. Many clubs competing in UEFA club competitions and running deficits will have to strengthen their balance sheets in order to meet the requirements.
The clubs financial performance and strategy will be crucial in the new financial fair play regulations especially since the break-even rule that will be assessed for the first time starting in July 2013.
It will be important for clubs start managing wages and player salaries. Player wage increased by 2.4billion from 2007 to 2011, an increase by 38%. According to the report, 46 European football teams would require funds to meet the financial fair play regulations, after a report revealed that clubs’ losses widened by two per cent to €1.68 billion in 2011.
Clubs such as Manchester City, Inter Milan and Paris Saint-Germain risk to fail the financial fair play regulations. PSG just singed David Beckham and has spent more than $350 million in the last two years. PSG President Nasser Al-Khelaifi told L’Equipe: “It’s necessary to become one of the great European clubs. Other clubs have invested for 20 years. We have been there for a year and a half and now we must stop pouring money? It would be unfair.”
Uefa President Michel Platini said; “Keeping costs under control and within sustainable limits is and will continue to be the clubs’ biggest challenge.”
To go to the full report, click here!
