CLUBS like Liverpool could be among the major benefactors if two of the Premier League’s leading clubs are excluded from European competition in the future for failing Uefa rules that are about to be introduced.
After several years of regular Champions League competition, the Reds, who competed in UEFA’s Europa League this season, are currently battling to avoid the prospect of failing to qualify for European football next term.
The Financial Fair Play Regulations do not come into force until June 1 and will not really bite until 2013.
However, a study of recent accounts shows Chelsea and Manchester City would fall well short of the rules if they were being applied today.
City were £110m in the red while Chelsea showed a deficit of over £50m.
Uefa’s rules allow clubs to run up losses of £65m over the first five years.
Financial fair play has been introduced by European football’s governing body Uefa to try and level the playing field between clubs funded by the super rich and those less fortunate.
In simple terms, teams cannot spend more than they generate from the football side of their business.
The guidelines aim to measure a club’s football business. Any revenue earned from side businesses such as property, hotels or media are excluded. So too are any costs not directly associated with the football club - such as huge interest payments like the ones incurred by Manchester United’s owners the Glazer family.
United made a pre-tax loss of £79m in 2010 but, by Uefa’s measure, actually returned a positive break-even result of £42m.
Arsenal would also easily meet the guidelines, posting a surplus of £55m.
