Despite the financial crunch in the old continent football is one of the fastest growing industries in Europe. Success is frequently measured in sport terms and, in the best of the cases, in income terms.
According to UEFA more than one third of all first-division ranked clubs across the continent are however in serious financial distress, reporting negative equity in their balance sheet and with a high probability of not being able to pay back their debt in due time. FC Barcelona and Real Madrid, unarguably the clubs yielding highest sport performance in the competition are to a certain extent subject to this disease, thus putting the sustainability of the current business models into doubt.
UEFA started their Financial Fair Game programm a few years ago with the purpose of putting these practices under control, and underperforming clubs will be banned from the competition in a couple of seasons unless they provide evidence of their commitment to improve. Clubs with severe structural flaws will simply cease to exist.
No comments:
Post a Comment