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We Are Too Rich, It's Official!
The Graundia reports "Manchester City and Chelsea face being excluded from the Champions League unless they can work the huge losses both have announced over the past seven days down to break-even levels within four seasons. Uefa is working up formal regulations that will entrench Michel Platini's plan to ensure that clubs operate without making significant long-term losses."
Platini really is an ass.
Obviously no club in the world wants to post losses like we just have but given the changing face of football over the years, some where teams are rewarded out of proportion to the rest, then what does he expect? Liverpool, Chelsea, them, Milan, Real and the rest have all made millions upon millions by belonging to that elite group of teams that constantly qualify for the Champions League. It's a vicious circle the top 3 or 4 teams in the big leagues get more money each year and each year they spend more and more on buying the better players that enable them to qualify again and so it continues. City breaking into the top 4 wouldn't change a thing in that regard but the only way for us, or even Tottenham or Villa, to do it now is to spend money. The present top 4 have that much of a head start that we have no choice and it's UEFA and idiots like Platini that have allowed it to get this far.
Wake up and smell the café au lait Michel. ~Pilgrim~
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4 comments
What Platini is suggesting seems to me like the following:
I have noneof my wages left at the end of the year but some generous relation bequethes a few thousand pound on me. I think, lovely i will buy a new car with that money, but then i am not allowed to do that because it means spending money that (in theory) i won't be earning.
It is a scary scenario when clubs can borrow as much as they want but when real owners commit their own money to a club and make them completely debt free this is a bad thing.
Fucking french
If the money was being pumped into milan or real no one would say a thing
Every business has a Balance Sheet which is a demonstration of it nett worth. What is being reported is a a Profit/Loss figure. Profit/Loss is great if you want to see how you are performing, but bears little relationship to your worth, cashflow and ultimately stability.
In other words, you can safely make a loss of $X if you have cash or asset reserves of $X on your balance sheet.
If I start a business tomorrow and my family gifts me $50,000 to start it, when I make a $20,000 loss in year one, no-one critisises me for being untrustworthy, far from it, I would be congratulated for not dipping into my reserves too much.
City post a loss, but can cover it with cash legally. Arsenal, MU and Liverpool borrow and still post trading losses of over 50% of City's. If I was their lendr I would be worried.
Platini is showing his acounting ignorance. He just doesn't want the status quo rocked. You can't get to champs league without spending, and now the little sad frenchman wants to stop any progress.
Its OK to get in serious debt to get to Champs league, but not to have a gift, perish the thought. Then when it fails, like it will for Liverpool, you have to do some smart talking.
It would be interesting what the EU would think of trading and competative restrictions based on intrusive accounting rules.
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