In the light of the acquisition of clubs by wealthy owners from abroad, mainly the oil tycoons from the Middle East, the need for the UEFA Financial Fair Play are being felt perhaps more than ever. With the acquisitions of Manchester City and Paris Saint Germain by a wealthy oil tycoon from Abu Dhabi and the Royal Family of Qatar, the teams have gone on and spent almost a billion dollars combined to bring in players, and that, is completely destroying the balance of football as a whole. Such is the predicament that UEFA is pushing through the implementation of its Financial Fair Play regulations.
Football has always been a very successful way to conduct business but in recent times, over the last 10 or 15 years, the need for teams to spend more money in the transfer market has not only made a huge impact in the clubs not being able to develop future talent for both themselves and the nation, but also the club’s coffers are getting depleted more and more as the clubs try to stay competitive, be it at the top of the League or at the bottom where the fight is for survival in the division.
The recent demise of the popular Rangers Football Club in Scotland was perhaps the biggest example of how being owned by wealthy owners can come back to haunt a side. The club’s assets were liquidated and the team was demoted to the third division, the fourth tier of Scottish professional football. Portsmouth, too, have been victims of the inflated expenditures that they have indulged in. when Roman Abramovic came in and bought Chelsea at the beginning of the 2003 season, the oil tycoon pumped in huge amounts of money into the club and in a matter of three years, Chelsea went from being a mid-table side to English Premier League champions.
But till then, everything was more or less in balance, until the arrival of the Arabs on to the scene when they bought Manchester City. City spent a staggering £ 459 million in transfers alone, and there was the buying of the club as well as clearing debts and many other factors involved. Moreover, City’s power to spend so much money in the transfer market saw inflated prices; so much so that legendary Manchester United manager Sir Alex Ferguson admitted that there is hardly any value for money in the transfer market.
Even clubs are also demanding large amounts of money for their players; and recently, when Paris Saint Germain agreed o pay Brazilian club Sao Paulo € 45 million for the services of 19 year old Lucas Moura, Ferguson blasted them for paying over the odds for a largely unproven player. And in such a scenario, the implementation of the UEFA FFP, which will allow the clubs to spend only the money they generate as revenues will almost, for certain, make it impossible for the likes of City and PSG to splash the cash to get what they want.