English clubs face Uefa ban if they fail to balance books

Premier League clubs will have five more years to put their financial house in order before facing the possibility of expulsion from European competitions. The European Clubs' Association, which represents 144 clubs, has agreed new licensing rules with Uefa, under which clubs cannot spend more money than they receive; but figures will be worked out over a three-year period, not a single season, and no sanctions will be brought in until 2015.

Karl-Heinz Rummenigge of Bayern Munich, the ECA chairman, who had met the Premier League's Richard Scudamore on Monday, said yesterday: "It's a very good day for European club football. I believe all clubs in future will be more responsible. It will become more rational." Rummenigge was speaking at the Soccerex European Forum in Manchester, where the message was that the old days and the old ways of financial mismanagement had finally to be addressed. Having a Premier League club go into administration has sent shock waves across the continent and the mood was summed up by Internazionale's chief executive Ernesto Paolillo, who said: "The old times are finished. Sometimes you need a shock and this is it."

In the same debate, Sevilla's vice-prsident Jose Maria Cruz said half a dozen Spanish clubs faced bankrupcy and that some in the Spanish second division spent one-and-a-half times their turnover on wages alone.

Manchester United's David Gill, a member of the ECA board, welcomed the new proposals, as did representatives of Arsenal and Chelsea, the two other English clubs in the top six of the Deloitte Football Money League announced yesterday. Gill claimed that United, "which has always been professionally run and will continue to be", already met the criteria because they related to breaking even, not accumulated debt.

Ivan Gazidis, Arsenal's chief executive, said: "The fundamental issue that we all face is do we have the courage and fortitude to control our spending in a fairly irrational environment. If we can manage that there's no reason why anyone can't have a long-term stable business in football. It's been very positive that Uefa are taking the lead on this. But I don't think football's in crisis because a crisis would be if you can't see the way forward. I think we're in an industry that has incredinble potential for growth.”

Chelsea's chief financial officer Chris Alexander added: "The ECA is working hard with Uefa to improve the financial framework. I'm sure there will be financial fair play that everyone can sign up to." Others have suggested it was anything but fair for Chelsea and Manchester City's owners to have wiped out huge debts by converting what they were owed into equity. Both clubs now claim to be debt-free and Alexander said: "There was initial investment [by Roman Abramovich] to be competitive with Arsenal and Manchester United but Roman doesn't want Chelsea Football Club to run perpetually at a loss.”

Have you tried new the Independent Digital Edition apps?
Life and Style
food + drink
Life and Style
Shoppers in Covent Garden, London, celebrate after they were the first to buy the iPhone 6, released yesterday
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Life and Style
healthFor Pure-O OCD sufferers this is a reality they live in
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvSeries 5 opening episode attracts lowest ratings since drama began
Arts and Entertainment
Ben Affleck stars as prime suspect Nick Dunne in the film adaptation of Gone Girl
filmBen Affleck and Rosamund Pike excel in David Fincher's film, says Geoffrey Macnab
Life and Style
Warner Bros released a mock-up of what the new Central Perk will look like
Arts and Entertainment
Lena Dunham
booksLena Dunham's memoirs - written at the age of 28 - are honest to the point of making you squirm
Arts and Entertainment
Jake Quickenden sings his heart out in his second audition
tvX Factor: How did the Jakes - and Charlie Martinez - fare?
Caption competition
Caption competition
Latest stories from i100

Bleacher Report

Daily Quiz
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments