Could Platini save Liverpool and Manchester United?

UEFA President Michel Platini is not happy with the 'economic jungle' that leaves clubs vulnerable to opportunists.

In an exclusive interview with The Sunday Telegraph, Platini revealed that soon clubs could no longer run on huge debts, and questioned the motives of American businessmen, the Glazer family and George Gillett and Tom Hicks, owners of English Manchester United and Liverpool respectively.

To fight against debt, once described by the former UEFA chief executive Lars-Christer Olsson as "economic doping", Platini plans to introduce a licensing system for clubs, where only those with balanced books will be allowed to play in the European competitions.

It is assumed that the issue was raised by clubs from France and Germany, countries with strict rules against debt, at a meeting of UEFA's Professional Football Strategy Council in Manchester.

Although two or three years would be given to the clubs to get their affairs in order, if we hypothetically apply his plan to the present - Gillett, Hicks and the Glazers would need to repay the loans taken to finance the takeovers.

Manchester United (GBP 551m), Liverpool (GBP 348m) and Arsenal (GBP 263m) accumulate over GBP 1.16 billion debt, equals to at least two years' television revenue for all 20 Premier League clubs.

While Arsenal balance the football book and its debt is entirely related to the new stadium, Manchester United and Liverpool are in huge debt due to the new ownership. Manchester United was debt free before May 2005, while today the club pays millions in annual interest, of which only part can be paid from earnings, the rest just gets rolled into the ever increasing debt.

Chelsea owner, Roman Abramovich, has dipped into his GBP 10 billion fortune and wrote-off at least GBP 500 million to allow the club to be debt free. In such condition, even if Abramovich decide to sell the club, it would be attractive to any new owner.

"It's not my business to solve the problem of ownership in your game," Platini told the Sunday Telegraph.

"There have always been some clubs, and some countries, with more money at their disposal than others," Platini said, "and I have no problem with that. The problem occurs when the clubs who run up huge debts always win - and that we must stop. Some clubs, and some leagues, have asked us to. We are preparing a plan that will encourage clubs to reduce their debts and give us clear, clean competition."

"We will need laws, regular laws, to become transparent and honest. But you can be sure we have the courage to see this through. Licensing will come and, when it does, no longer will clubs be able to win through debt."

Since many commercial businesses run based on financing and debt structure, it is expected that the validity of such licensing system will be brought to judgment before the European Court.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.