Source: Daily_Mail
UEFA could ban English clubs from Champions League over wild spending
UEFA have approved plans to bar high-rolling Barclays Premier League clubs from the Champions League if they spend beyond their means.
Michel Platini has got his way on 'financial fair play' rules that in principle will ban clubs from spending more than they make from their revenues.
The aim is to end the trend of rich owners buying into the game and transforming the fortunes of a club, as has been the case at Chelsea under Roman Abramovich Manchester City under Abu Dhabi billionaire Sheik Mansour.
Manchester United, Liverpool, Chelsea and Arsenal kick off the group stages of the Champions League this week knowing they will be under more scrutiny from 2012-13, thanks to the decision by the UEFA executive committee.
Platini, president of European football's governing body, has been accused of particularly trying to break England's dominance in Continental competitions.
The new rules would also be applied to the Europa League and across clubs from all associations.
"We don't want to kill or hurt the clubs, on the contrary we want to help them in the market," said Platini.
"The teams who play in our tournaments have unanimously agreed to our principles.
"The owners are asking for rules because they can't implement them themselves, many of them have had it with shovelling money into clubs and the more money you put into clubs, the harder it is to sell at a profit."
UEFA believe current levels of spending cannot be sustained, but their new rules will only be applied to their competitions rather than domestic championships.
The Premier League have agreed new financial reporting methods that will help to monitor when clubs might be hitting trouble.
There will even be powers for the League to veto transfers if the board do not feel they are viable.
But linking expenditure to income, as with the UEFA plan, has been rejected.
Chief executive Richard Scudamore said: "Clubs will all have to annually submit accounts and future financial information.
"At all times the board of the Premier League will be applying a test which basically says this: can the club fulfil its fixtures, pay off its creditors when they are due and also to meet obligations to the Premier League's contracts and partners?
"If the board believe a club is at risk of not meeting those obligations, it has to then step in and agree a budget for the running of that club. Any transfers can be embargoed.
"It's absolutely crucial that these clubs are run as ongoing viable concerns. These financial rules apply immediately.
"This is tied in, and we passed the rule during the summer, to a 'fit and proper person test'. At our club meeting last week, the clubs absolutely endorsed our position of not linking expenditure to income."
The Premier League rules will be applied immediately. Clubs must submit independently audited accounts to the Premier League by 1st March each year with requirements to note any material qualifications or issues raised by auditors.
There will also be a requirement for clubs to submit future financial information to the Premier League by 31st March each year. This will act as an improved early warning system should any club take undue financial risks which may have consequences for future financial stability.
Clubs will also have to demonstrate to the Premier League Board that they do not have outstanding debts to other clubs.
UEFA have appointed former Belgian Prime Minister Jean-Luc Dehaene to lead its campaign to control excessive spending by Europe's top football clubs.
Dehaene, who led Belgium's government from 1992-99, will be the chairman of UEFA's Club Financial Control Panel.
The panel will monitor the accounts of clubs which play in the Champions League and Europa League. It will include about nine experts who are independent from clubs or leagues.
