Mikel Arteta transfer hint? Dutch League shut down.

New post up now

Just found this in the Athletic.

European football’s governing body UEFA has relaxed its Financial Fair Play regulations to help cash-strapped clubs survive the crisis caused by the coronavirus pandemic.
With the professional game facing its biggest economic challenge since World War Two, the move has been broadly welcomed by football finance experts but some have warned UEFA not to let clubs with the wealthiest owners take advantage of the temporary relaxation.
In response to calls for urgent help, the Swiss-based governing body has extended the deadline for clubs to prove they have no “overdue payables” — such as unpaid tax bills, transfer instalments or wages — from March 31 to April 30.

Furthermore, it has also reminded clubs that the principle of “force majeure”, a French term that means greater force, is written into the spending rules.

“Any extraordinary event or circumstances beyond the control of the club that are considered a case of force majeure are taken into account as part of the club’s assessment, on a case-by-case basis,” a UEFA spokesperson told The Athletic.

Introduced in 2011 to curb overspending, the FFP regulations are based on the idea that clubs should not spend more than they make from their ordinary business activities. Owners are allowed to invest as much as they like in the club’s academy, community work, stadium and women’s teams but there are strict limits on how much additional funding they can put into the first team playing budget or transfer kitty.

The rules are policed by an independent body known as the Club Financial Control Body, which has investigatory and adjudicatory arms. Numerous clubs have been sanctioned for breaching these rules, most notably Manchester City, who are currently appealing against a two-year ban from European club competition that was imposed last month.

It is understood that the decision to push back the deadline for unpaid bills and reassure clubs that any extra support from owners in the coming months will be assessed more leniently than usual follows talks with the European Club Association, the organisation that represents the interests of the continent’s leading clubs.

Confirmation of UEFA’s move comes a day after the Premier League warned clubs that domestic broadcasters might ask for £762 million back if no further fixtures can be played this season and former Football Association chief executive Mark Palios told The Athletic that clubs will go bust if players do not agree to pay cuts.

“UEFA has employed a practical and sensible approach,” says Kieran Maguire, a football finance expert who lectures at the University of Liverpool. “By giving clubs longer to provide proof of no outstanding debts it allows the clubs to focus on day-to-day issues rather than administrative compliance issues.

“In relation to the monitoring for FFP, UEFA has acknowledged we are in extraordinary times. It has effectively allowed clubs some flexibility in terms of FFP compliance.
“At the same time, those clubs who do have significant resources behind them cannot exploit their financial advantage to use the present circumstances to give themselves carte blanche in terms of spending money without fear of action.”

John Mehrzad QC, a leading sports law specialist at Littleton Chambers, agrees with Maguire that this move was necessary, pointing out that the relaxation of the March 31 deadline will help “clubs remain afloat” at a time of continuing expenses and uncertain income.

He warned, however, that it might not be so good for “clubs, players or staff wishing to be paid over the next six weeks, as clubs can effectively default until the end of that period and not face UEFA sanction”.

But this, he explained, is the “hard balancing act” governing bodies have right now, as they prioritise saving clubs on the basis that if they go bust, their players and staff might not receive any further pay at all.

On the decision to take a more generous view of injections of cash from owners, Mehrzad says: “That approach makes sense but it is potentially open to abuse if, for example, a very rich club injected in a lot of cash from an owner not to use on wages but to buy players in the next transfer window. Hence, the assessment on a ‘case-by-case’ basis.”

Nick De Marco QC, from Blackstone Chambers, is perhaps the leading legal expert on FFP rules in the UK and described the UEFA move as “obviously sensible”. But he would like to see the British football authorities follow suit.

“The suggestion that clubs may be able to rely on the principle of ‘force majeure’ will be of particular interest,” says De Marco. “In England, the clubs that are struggling the most to pay their players and keep going are governed by the English Football League’s (Profitability and Sustainability) rules which are far stricter than those of UEFA.

“In my view these rules need to be suspended during the current health emergency. Clubs are already struggling to be able to pay their players and other staff, and if the only way they can do so is by going into debt it makes no sense at all to then punish them for it.”

The EFL declined to comment on UEFA’s decision to loosen its rules but it is understood that any change to its profitability and sustainability regulations would have to be agreed by its 71 clubs and those conversations are ongoing.

Sean Cottrell, the founder and chief executive of LawInSport, sums up the situation like this: “Extending the deadline makes sense, given the crisis countries across the world are facing.
“Football, like all sports, is having to adjust rapidly to the situation and in many cases they are supporting local communities at this difficult time whilst managing their own internal difficulties. “What is of interest is UEFA suggests COVID-19 is considered a case of force majeure in terms of FFP. This may have significant legal implications later down the line for clubs and players.”

The board represent the owners Geoff and we’ve heard from the club. Re the money, perhaps the rumours about them helping financially were just that, rumours. Or what they are doing, or have done is not being disclosed right now.

Morning Adam, totally agree re Ozil and co. But it’s easier to make news fit than to say nothing about something which probably isn’t going on.

Arteta is so so easy on the ear…