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

Russell Slade (left) and Kevin Nugent returned to Brisbane Road at the weekend with Charlton Athletic. Pic: SIMON O'CONNOR

Addicks boss returned to Brisbane Road for the first time since leaving at the weekend and was given huge applause by home supporters

Russell Slade
Leyton Orient caretaker Andy Hessenthaler watches on (pic: Simon O'Connor).

League Two boss pleased with Yvan Erichot but knows he needs to bring another defender in before August 6

Kevin Nugent
Saturday, July 23, 2016
Leyton Orient boss Andy Hessenthaler looks on (pic: Simon O'Connor)

Pre-season friendly: Leyton Orient 0 Charlton Athletic 0

Sean Clohessy
Friday, July 22, 2016
Leyton Orient's badge outside Brisbane Road (pic: Play With A Legend).

Ex-Oldham Athletic ace will play his first home match at E10 and has discussed his role in helping improve the youngsters in the squad

Russell Slade

Newsletter Sign Up

Most read sport

HOT JOBS

Show Job Lists

Competitions

Which book character do you share cleaning habits with?

Whether you have more in common with put-upon Cinderella, emotionally turbulent Jane Eyre, or easily distracted Mole, you’re sure to appreciate that one lucky winner will receive four sessions of free cleaning. Enter our quiz for your chance to win. All runners up will get £10 off their first clean when making a repeat booking.

Read more
£15k prize bundle

Imagine having the opportunity to win an incredible £15,000 bundle of some of the most amazing prizes available. Well, for one lucky contest entrant that dream could soon become a reality because we at MyOffers are offering an incredible free prize bundle that will make even the most hardened person wild with excitement.

Read more

Digital Edition

cover

Enjoy the
Newham Recorder
e-edition today

Subscribe

Education and Training

cover

Read the
Education and Training
e-edition today

Read Now