Michel Platini the UEFA president said that the approval last week of new financial play fair rules is the start of a vital journey for football in Europe that will lead to the stabilization of economic common sense.
The approval of the rules means that clubs that want to compete in the Europa League or Champions League will need to break even during each season in order to be eligible. Additionally, club owners will only be able to invest £38m for the first three seasons after the regulations start in the 2012 and 2013 football season.
The aim of the new legislation is to level the playing field, but the biggest clubs in England may feel the impact deeply with super rich owners of clubs such as the Manchester City and Chelsea unable to contribute millions of pounds in order to purchase star players and cancel out losses.
During this time, the Premier League, which has turned away from any suggestion that clubs should have to pass through tighter regulation, is also introducing a new set of financial rules.
Next week the Premier League will meet in order to stamp a new set of laws that will hopefully prevent another collapse like what happened in Portsmouth.
Included in the new financial laws are measures that will permit the Premier League to withhold TV rights payments and or to intervene if it is not happy with the club’s financial direction which includes stopping a takeover, access to details of all loan deals, and the ability to assess the suitability of any potential new owner of a club.