Rummenigge accused Chelsea of fiscal irresponsibility at EU meetings

German Bayern Munich's president Karl-Heinz Rummenigge derided English Chelsea for distorting the value of European competition, and suggested a salary cap as a method of keeping values realistic.
 
Rummenigge, representing G14 clubs, of which Chelsea is not a member, spoke at a European parliamentary meeting called to examine the practices of football.
 
Among his targets were Chelsea, which he singled out for its “unacceptable” lack of budgeting control.  Chelsea’s budget this summer will include what is believed to be a GBP 121,000-per-week contract for Bayern Munich midfielder Michael Ballack. That alone might have spurred Rummenigge’s comments.
 
“We could have a salary cap: when a big proportion of turnover is spent on wages clubs are going to be in the red,” Rummenigge said. “We should have an overall salary budget capped at … 50 percent of turnover. Across Europe there should be harmonisation. Eighty to 85 percent of professional clubs in Europe are losing money. The pressure of competition leads to misinterpretation.
 
“We have a EUR 200 million [GBP 137.213 million] turnover and Chelsea, who as everyone knows are owned by Roman Abramovich, have turnover [of GBP 146.6 million]," Rummenigge added. “We make a EUR 35 million profit; this is required for our investment. Chelsea lost EUR 204 million; Mr Abramovich obviously stumped up for it. This [makes for] unequal competition but we are playing against each other in the Champions League. This is not acceptable.”
 
Though Chelsea, which followed its GBP 140 million loss with a second consecutive title this season, are clearly associated with the burgeoning salaries and transfer fees, the Premier League champions responded to Rummenigge, justifying the expenses in that they are catching up with the investment of competitor clubs.
 
“It is total nonsense to suggest that this is somehow uncompetitive or unequal,” said Simon Greenberg, Chelsea’s director of communications. “There are clubs who have spent more than Chelsea in the last 10 years.”
 
“There are clubs who are not as transparent as Chelsea with regard to their finances. It is our publicly stated position that we will try and break even in 2010 and thereafter hopefully make profits. Football is a free market and to suggest our position is not acceptable is ludicrous.
 
“These comments may have been made in order to play up to this particular audience or because of other issues surrounding our two clubs at the moment.”
 
The EU are seeking fiscal accountability and intend to root out chances of corruption and tax evasion in the game. The parliament appeared open to Rummenigge’s idea to introduce a continent-wide salary cap.
 
Rummenigge said the G14’s stance was that elite clubs should benefit from perpetual participation in Europe's premier club competition. Rummenigge said, that since Bayern Munich have “taken part in the Champions League on 12 occasions it is fair that there should be a body where participation is guaranteed [for certain clubs].”