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Uefa warns clubs after deadline-day transfer spree

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Uefa regulations will affect Premier League spending in the future - Deloitte

Uefa has reminded clubs that new financial regulations will be enforced rigorously after a record-breaking January transfer window.

The rules, which come into force in 2012-2013, mean teams in European competitions must break even over a rolling three-year period

Those clubs will only be allowed to incur losses of around £39m over any three-season period.

English clubs spent £225m in the January transfer window.

On Monday Chelsea and Liverpool spent more than half that amount between them.

The Blues broke the British transfer record by paying Liverpool £50m for striker Fernando Torres while the Reds spent £35m on Newcastle's Andy Carroll.

Liverpool forked out £22.7m for the Uruguay striker Luis Suarez from Ajax and Chelsea paid Benfica £21.3m for the Brazilian defender David Luiz.

But such spending has raised questions about whether clubs would be able to comply with the Uefa financial fair play regulations.

Top agent 'shocked' at Carroll fee

On Monday Chelsea announced total losses of £70.9m for the year ending 30 June 2010, up £26.5m on the previous year.

However, the club feel they are currently on course to more than halve their losses in the next financial year.

They have reduced their player bonus scheme and renegotiated new sponsorship deals while there has been increased revenue from Champions League and Premier League television rights, plus a rise in ticket prices.

Losses will be reduced further if the club complete the sale of the naming rights to Stamford Bridge, which could net them £10m per year.

Because the transfer fees for Torres and Luiz are spread over their five-and-a-half-year contracts in terms of the club's financial figures, the £75m spent will not come in one big hit.

But the European governing body, which will begin to sanction clubs that do not comply from 2014, said clubs could spend what they wished so long as they balance their books.

A statement said: "Uefa is aware of the recent transfer activity across Europe and is confident that clubs are increasingly aware of the nature of its financial fair play regulations which require them to balance their books.

"It must be noted, however, that the financial fair play rules do not prevent clubs from spending money on transfers themselves but rather require them to balance their books at the end of the season.

"It is therefore difficult to comment on any individual situation without knowing the long-term strategy of each club."

Uefa did warn, however, that transfers made now will affect clubs accounts in the future.

"There is no doubt that transfers made now will impact on the break-even results of the financial years ending 2012 and 2013 - the first financial years to be assessed under the break-even rule," it added.

Fernando Torres
Chelsea's deal for Torres broke the British transfer record

"The clubs know the rules and also know that Uefa is fully committed to implementing them with rigour.

"For example, as from this summer all payments due on transfers and to employees will be assessed by the Club Financial Control Panel as part of the 'enhanced overdue payables' rule."

Meanwhile, AC Milan vice-president Adriano Galliani has hit out at English teams for their "crazy" transfer spending in the wake of the big money moves for Torres and Carroll.

"Everyone's talking about balancing the books but then they spend like crazy people," said Galliani.

"[Chelsea] strengthened in an amazing way spending 80 million euros, I just don't know where financial sense will end up."



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see also
Transfer window a nonsense - Redknapp
01 Feb 11 |  Tottenham
Top agent 'shocked' at Carroll fee
01 Feb 11 |  Premier League
Carroll seals switch to Liverpool
31 Jan 11 |  Liverpool
Chelsea pay record fee for Torres
31 Jan 11 |  Chelsea
Liverpool sign Suarez for 22.7m
31 Jan 11 |  Liverpool
Chelsea complete signing of Luiz
01 Feb 11 |  Chelsea
Scudamore supports new Uefa rules
17 Jan 11 |  Premier League
Boss Wenger hails new Uefa rules
04 Jan 11 |  Arsenal


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