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Platini strikes at top clubs’ growing bank debts

Comment: 0 November 16th, 2011 by: admin

UEFA president Michel Platini recently called out the top Premier League squads for their consistent borrowing from banks in order to fund their spending sprees.

According to Platini, the status of the European economy makes the sight of football squads’ growing debt and the banks’ lending downright shameful.

The UEFA head reasserted his full insistence for the observance of his Financial Fair Play rules, which would limit team spending to only what they earned.

Platini asserted that if clubs do not follow his rules, the chances of some going bankrupt grow even more.

‘Many clubs will disappear,’ he warned.  ‘Banks can’t carry on lending to millionaires when people are dying of hunger.  We have to be an example, and Financial Fair Play has an ethical value.’

Platini continued to assert that the notions of strained national economies and the massive debts incurred by the clubs do not make sense.

‘In 2011, the world is in crisis and people everywhere are tightening their belts,’ remineded Platini.  ‘So how is it possible that clubs have such high levels of debt?

‘We can’t spend more money than we earn.  That’s simple, isn’t it?’

The Financial Fair Play system requires that clubs who do not break even on soccer-related business to be barred from the Champions League as well as the Europa League.

‘[The system] is very important in this period of economic crisis,’ said Platini who headed to Milan to accept an award.  ‘I don’t understand why, while the economy is suffering, football squads should have so much debt.’

The UEFA president furthered, stressing the importance of clubs limiting their expenditures to the amount they have brought in themselves, instead of endangering themselves and the economy by borrowing.

‘Clubs shouldn’t spend more than they earn,’ Platini said, as quoted by Businessweek.  ‘Every year professional football produces ($1.9 billion) of debt in Europe.  I was the annoying one who said it’s time to stop that.’

The rules and mandates under the Financial Fair Play system are set to take effect by the start of the 2013-2014 season.

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