UEFA fair play rules

As some of you may be aware next season will mark the first season of uefa financial fair play where teams in all of the top Europe leagues have to start to sort their finances out.

Next year clubs have to show that they are reducing their losses. This leads to the 2015/16 season where teams will have to live within their means or risk being banned from European competitions and/or other bans i.e. banned from buying players during transfer windows until debt is cleared.

Some of the criteria clubs have to meet are:

Not recording a loss in the financial year
Not spending more than 70% of the revenue on wages alone
Being able to pay football-related payments or taxes on time
Not having a level of debt higher than the annual turnover

I think this is a good move by uefa as it will secure the futures of the teams. It will mean teams have to start to develop their own talent something the majority of the English teams seems to neglect (in the champs league final Barcelona had 7 home grown players in their starting 11) and it will stop these ludicrous transfer fees and players will have to lower their demands for wages.

Now as for Newcastle I think we will be able to match the new rules by the time there in full affect as the wages have started to become move of a manageable level after the high earners left before life in the championship and it’s my understanding that the personal loan that Ashley has given to the club is not due to be paid until the club becomes profitable (cant remember where I have seen this but if I find it I will post it later)

So whats everyone thoughts on this? How the toon currently stand to meet the new rules?

(my first article so hello everyone)

 

Good evening to you sir!

I believe that the personal loan only becomes repayable upon the sale of the club so effectively Ashley will 'add that on' to the eventual selling price.
Interesting to note recently that NUFC was recently held up in the financial press as a prime example of how great progress has been made in getting it's house in order.
To cut a long story short I think that financially we are in great shape compared to the rest of the prem and the future looks good In the financial sense but success as we know is judged more on the pitch than the balance sheet....

 

Welcome to the forum
Great first post!
I'll comment properly when I'm more with it - spacey at the moo

 

One of the best first posts I have seen Love the username as well.

I think we will be ok with regards to the rules that FIFA are bringing in. What will be interesting is Manchester City, did I see that they are spending more on wages than their actual income?

 

90% of Newcastle's turnover is spent on wages (source). I wouldn't describe that as 'great financial shape' and some swingeing cuts are going to need to be made to meet UEFA's 70% threshold.

 

I feel confident we will be able to match the financial rules being brought in if they were imposed next year we're financially superior to most clubs in England just a shame we are not superior football wise

 

They have several players that are on about 200k a week and the other players they have are on an average of about 70-80k a week all coming from the owners pockets so i can't see how they will manage to keep up with the new rules, and thats one of the reasons they attract the players they have, i can't wait to see them fail hahahaha

 

Im pretty sure that was when we were in the Championship. I may be wrong.

 

The figures are from 09/10, but will wages not have been increased since then with promotion clauses or at least remained static?

 

Our income will be a lot more in the Premier League though surely.

 

Good evening,

Paul Kelso's report about the prospects of Ashley selling Newcastle for the telegraph : " crucially for any potential buyer an interest-free £100 million loan is repayable to him on demand should the club change hands."

We have been hailed as one of the soundest clubs in the Premier League recently, with turnover expected to be over 100m for season 2011/2012. Our wage budget has been reduced to just over 50m and our Barclay's over draft of 20m is no longer at maximum. Exciting times ahead

 

I wouldn't have thought matchday and commercial income would be too different, but as far as TV money goes, £16m looks pretty measly for Newcastle United. Perhaps the 90% has lowered but I would still have thought NUFC were a fair distance away from the 70% figure.

 

Thats good reading now it was massive before hand

 

Ashley has been balancing the wage bill. And financially, I trust MA more than I would most. He isn't stupid financially, clearly, its just his footballing decisions leave a lot to be desired.

I am not sure if this counts, but I have heard that 22000 ST holders signed up for the 10 year deal. Does the assurance that this money will come in eventually count towards our income as an overall total?

 

The figures are from our Championship season. Last 2 Premier League turnovers: in 2007/2008 100.8m 2008/2009 £99.4M

We should be looking at around 55% turnover to wages by this time next year if everything's maintained.

 

This is correct Leazes. As we know, theres a lot of high earning deadwood been moved on since, hence my comment. The financial press are anticipating quite a turnaround...

 

Good comments on MA's ability to keep the financial side of things right, he's a good business man, it's just a pity that he has no real football knowledge.

Just imagine what things might have been like if Freddy Shepherd had been left in charge though.

 

Bloody hell, I didn't think it would have changed that much. I'm talking out of my anatid arse, in that case.

 

Can only be a good thing, will improve the overall state of the game, and stop the big money spenders like city.

 

The difference between the Championship and Premier League is about 40m per season. We recorded a record 52m turnover in the 2nd tier including a massive 15m in commercial income. We have stayed up and maintained our wages at roughly an equal level and this summer we are moving on some of our high earner's to replace them with younger, cheaper players. Its win win as our club is no longer in financial ruins and Ashley within a few season will no longer have to balance to books.