Search

Chelsea to compromise over financial fair play as Premier League chiefs set for showdown

18:15 06 February 2013

Chelsea FC owner Roman Abramovich. Picture: Dominic Lipinski/PA Archive

Chelsea FC owner Roman Abramovich. Picture: Dominic Lipinski/PA Archive

PA Archive/Press Association Images

Chelsea are set to back both a wage increase cap and a compromise financial fair play deal at tomorrow’s showdown meeting of all 20 Premier League chairmen.

The Roman Abramovich-owned club had been viewed as a hardline opponent of financial fair play (FFP) but it is understood Chelsea will agree to a system that obliges clubs to break even but allows owners to cover some losses.

Insiders at Stamford Bridge insist they have never been opposed to a compromise agreement, and that position should now ensure that both spending control systems are agreed tomorrow.

Arsenal, Manchester United, Tottenham and Liverpool will still argue however that wealthy owners should not be allowed to underwrite any losses, but in order to push FFP through will have to settle for a compromise where up to £105million over three years can be covered.

Opponents of a no-compromise FFP argue that the system maintains the status quo and favours the biggest clubs with large stadia and high commercial income. Four clubs - Manchester City, Fulham, West Brom and Aston Villa - are still expected to vote against it.

Chelsea’s backing of a compromise however should enable the necessary 14 out of the 20 votes to be reached.

The wage increase cap may also be watered down however - initially Sunderland owner Ellis Short had suggested a maximum 10 per cent increase allowed for player wages. It now looks likely that the cap will only affect those clubs whose total bill is higher than £52million so that promoted sides are not prevented from improving their squads.

Furthermore, spending money earned from clubs’ individual sponsorship deals on wages will not be restricted. That can be significant - in Manchester United’s case commercial income totalled £117.6m last year and their wage bill £160m.

But some form of wage increase cap will satisfy club owners who are fearful of the bulk of the income from next season’s bumper new television rights deals - expected to be worth £25m-£30m per club - going straight into the pockets of the players and agents.

The Premier League’s expected FFP system would be less restrictive than UEFA’s, which is being brought in from next season and will oblige clubs to break even or face possible exclusion from European competition.

Under UEFA’s system, for the first three years owners will be permitted to cover annual losses of up to £12million via equity but that will then be phased out.

Arsenal, Manchester United, Tottenham and Liverpool - styled as the ‘gang of four’ after they sent a joint letter to the last shareholders’ meeting calling for owners not to be allowed to cover any losses at all - argue that tough FFP measures will maintain the Premier League’s competitiveness and its attraction to a global TV audience, rather than risk a situation developing such as in Spain where only two clubs dominate the football landscape.

Related articles

0 comments

Latest Newham Sports News

Yesterday, 18:38
Ravi Bopara appeals for a wicket (pic: Gavin Ellis/TGSPHOTO)

Little play possible on wet final day

Ravi Bopara
Yesterday, 17:00
Edward Kennett of Lakeside Hammers (pic: Rob Newell/TGSPHOTO)

Elite League’s top two meet at Purfleet

Andreas Jonsson
Yesterday, 16:30
Shoujin Karate Kai faced their toughest competition yet at the British Four Nations

Local club fared well at event in Sheffield

Sheffield
Yesterday, 14:30
Leyton Orient's Brisbane Road (pic: Play With A Legend).

East Londoners will send team featuring third-year scholars and academy players to the two Ryman Premier clubs

National League

Newsletter Sign Up

Most read sport

HOT JOBS

Show Job Lists

Competitions

Win a BMW 1 series

There are fewer cars currently on the market more stylish and exciting than the BMW. Known all over the world as one of the best car manufacturers, the BMW is renowned for sleek designs and fantastic high quality workmanship.

Read more
Kindle 7 inch tablet

Are you looking for a brand new gadget to help you stay connected on the go and make that long journey home a bit more entertaining? Look no further. MyOffers is giving you the chance to win 1 of 50 Kindle Fire 7” Display Tablets! That’s 50 times more chances to win, so hurry up and enter our competition today and you could be one of our lucky winners!

Read more

Digital Edition

cover

Enjoy the
Newham Recorder
e-edition today

Subscribe