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Financial Fair Play? By Steve Menary Austerity and Sustainability in Football The 2 nd Annual MMU Football Conference Manchester Metropolitan University.

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Presentation on theme: "Financial Fair Play? By Steve Menary Austerity and Sustainability in Football The 2 nd Annual MMU Football Conference Manchester Metropolitan University."— Presentation transcript:

1 Financial Fair Play? By Steve Menary Austerity and Sustainability in Football The 2 nd Annual MMU Football Conference Manchester Metropolitan University June Football, Community and Sustainability

2 The top of the pyramid Chelsea get 59.9m (£50.9m) for winning the 2011/12 Champions League Plus £54.4m for finishing fourth in Premier League In 2011/12, Chelsea turnover is £255.7m

3 A step away from the big prize Basel qualify from Group C ahead of Manchester Utd to last 16 UEFA payment 15.8m (£13.4m) Basel turnover 61.5m Swiss Francs (£42m) After match-day takings, UEFA prize money is Basels biggest source of income

4 Another step further away Debrecen qualify for the group stages in 2009/10 No points from six matches but 9m from UEFA Debrecen turnover 3.4m in 2011* TV rights in Hungary 500,000 per club per season *Source: Sportgazdasági nagyító'

5 Cyprus In 2007, a University of Nicosia survey found that turnover at clubs in the Cypriot first division ranged from 2.8m to 744,319 Total turnover at all 14 clubs in the league was 17.5m *Source: Important Parameters of the Football Industry in Cyprus: Challenges and Opportunities by the University of Cyprus, The Sport Journal

6 Quadrupling your money In 2009/10, APOEL qualify for group stages and win 9 million in prize money from UEFA In 2011/12, APOEL again qualify for the group stages and eventually reach the quarter-final UEFA prize money: 18.1m In 2008/09, Anorthosis Famagusta are the first Cypriot team to qualify for the group stages of the Champions League Famagusta take six points, including a 3-1 victory over group leaders Panathinaikos UEFA prize money: 7.5m

7 The bottom of the pyramid

8 2012/13 qualifiers Each domestic champion club failing to reach the group stage of the UEFA Champions League receives 200,000. In addition, each club which participates in the first qualifying round gets 140,000 provided it does not qualify for the group stage, in which case it will not be entitled to this payment In addition, each club playing in the second qualifying round receives 140,000 provided it does not qualify for the group stage, in which case it will not be entitled to this payment In addition, each club eliminated in the third qualifying round receives 140,000. Clubs which qualify for the play-offs benefit from the fixed fees allocated for that round No solidarity payments paid to clubs involved in the play-offs but each of the 20 clubs concerned get 2.1 million. Eliminated clubs move into the group stage of the UEFA Europa League, join the distribution system of the UEFA Europa League and retain payments made for the qualifying phase of the UEFA Champions League (first and second qualifying rounds).

9 Who wins what in the first round? In 2012/13, F91 Dudelange are the first Luxembourg club to win two Champions League qualifying rounds UEFA prize money: 620,000 F91 Dudelange turnover: Circa 1.2m UEFA prize money can go a long way here, Paul Philipp, head of the Luxembourg FA Tre Penne win 340,000 in UEFA prize money for losing two games, 0-7 and 0-4 Average club turnover in San Marino: 85,000

10 Elsewhere…. Turnover at clubs in the Faroese league ranges from 270,000 to 540,000 In 2012/13, Faroese champions B36s prize money after going out on penalties to Linfield was 340,000 Linfield lost 3-0 to Limassol in the next round but still received 480,000 after failing to score once in four games

11 Does every country want a club in the group stages? Iceland Should a team from Iceland qualify, we would without a doubt see total monopolisation of the domestic league by that team. Ómar Smárason, KSI Montenegro It would be a football revolution in Montenegro, Nikola Prentić General secretary, FK "Budućnost" Podgorica

12 What is happening? In the 2013/14 Champions League, 21 countries will be represented by exactly the same club(s) as the previous season Dinamo Zagreb have represented Croatia for eight seasons in a row Since 2001/02, Sheriff Tiraspol have taken all but one place offered to Moldovan clubs

13 What about Financial Fair Play? Clubs that can prove to UEFA that their income and expenses are below 5m in the two years before qualification are potentially exempt from the break-even clause in FFP In practice a club with total relevant expenses of less than 5m a year is unlikely to have much of an influence on the sustainability of club football as a whole. UEFA statement

14 Closing questions Clubs that want to mount a domestic challenge are increasingly fighting against a hegemony funded by UEFA. What happens if these dominant clubs fall off the UEFA gravy train? If clubs no longer fall under UEFAs scrutiny are they simply to be forgotten? What is sustainable about creating a two-stream Europe with financially bloated smaller clubs simply allowed to pass quietly under the most significant part of the FFP radar?

15 Financial Fair Play? The Blizzard, Issue 8, 2013


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