Should the UEFA limit the amount a football club can spend on transfers and wages despite the limitations this would put on the the potential of a club to grow – Research Paper Example

Download full paperFile format: .doc, available for editing

This leads to loss of interest of fans, who may opt to switch their allegiance to a stable team. Football clubs should embrace realism and stop spending money which they did not make. This will enable football clubs grow and ensure that the glory of the beautiful game as we know does not get lost. UEFA should impose spending cap laws, and spell out harsh penalties to the football clubs that do not abide by these laws. Some of the harsh penalties proposed by football experts include transfer bans, fines, withholding of prize money, and expulsion from the UEFA Champions League and UEFA cup (Rose 2012, p. 9). These sentiments got echoed by UEFA president who stated that more than half the football clubs in Europe keep losing money.

He explained that capping the spending of cubs is in the best interest of the club. Shocking research by UEFA has shown drastic increase in the losses accrued by European football clubs. Reports show that losses in 2010 peaked at €1.6 billion, with over 65% of the club leagues in Europe recording massive losses.

This has been the case despite the fact that revenues of professional European football clubs have increased by an average of 9.1% annually, over the past six years. The UEFA president emphasized that these rules are not meant to hurt the football clubs, but in the contrary, they are meant to ensure their continued existence in the market (Smith 2012, p. 25). Limiting the amount of money spent on transfers and players’ wages also prevents wealthy football team from playing big brother and signing the best players. This reduces the chances of wealthy clubs perpetuating unsporting behavior such as limiting the ability of rival clubs to signing skilled players, and ensuring victory through the use of their superior economic might.

Through taming spending habits of football clubs, each team has almost equal economic ability to attract top quality players. This will lead to equal distribution of playing talent in the football clubs, which in turn increases economic benefits to both the team and league (Bensch 2012, p. 2). There is a need to create and maintain a level playing field through controlling the amounts of money spent by football clubs.

This will prevent football clubs with wealthy owners from making hefty cash gifts to the clubs, thereby increasing liquidity levels, and gaining undue advantage over relatively poor clubs who run on a sustainable business model. The outcome is increased competitiveness within their revenue boundaries (Parrish 2011, p. 57).


Atwal, S., 2012. May 25. Disrupting sport with big data. The Kernel, p. 7.

Bensch, B., 2012. April 25. Englands Football League to Adopt Financial Fair Play Rules.

Retrieved May 25, 2012, from Bloomberg:

Carroll, A. B., 2012. April 23. High level debate on the UEFA Financial Fair Play rules at the

College of Europe’s annual football tournament. Retrieved May 25, 2012, from Hk


Conn, D., 2012. January 25. Uefas fair play rules will help clubs reign in spending. The

Guardian, p. 32.

Great Britain: Parliament: House of Commons: Culture, M. A., 2011. Football governance:

Seventh report of session 2010-12, Vol. 2. London: The Stationery Office.

Holland, P., 2012. April 18. Ambition football. Retrieved May 25, 2012, from

Keys, A., 2012. April 12. Financial Fair Play: The only way. The Gooner, p. 23.

Matt, R., 2012. May 13. The Football League to widen fair play rules. Retrieved May 25, 2012,

from Football Trade Directory:

Parrish, R., 2011. Sports, Law and Policy in the European Union. Manchester:Manchester

University Press, p.47

Rose, M., 2012. May 2. Financial Fair Play. Football First, p. 9.

Smith, D., 2012. Can Football Kick Its Addiction To Debt? Economy Watch, p. 25.

Taylor, D., 2012. May 20. The Football League FFP Rules. Fc business Blog, p. 2.

Download full paperFile format: .doc, available for editing
Contact Us