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Michel Platini Threatens To Ban Manchester City From Europe
The UEFA chief has stuck the boot into English football once more, declaring that the Citizens could be axed from European competition if they keep launching mega-money bids for the world's top players...
If there is one man on the planet who unequivocally loathes the trend of ever-rising transfer fees in club football, it is UEFA president Michel Platini.
The Frenchman has made no secret of his plans to license every team in every European league, so as to make sure nobody spends beyond their means in their quest for a star-studded squad.
The Premier League has, of course, stirred Platini's wrath more than any other, with debt-ridden Manchester United and Chelsea most often the subjects of his spiels.
But it is the blue half of England's second city that is the focus of the former Juventus star's latest tirade, and in particular their well-publicised (but ultimately doomed) pursuit of Milan superstar Kaka.
Platini said in The Sun, “How can a guy cost €150 million? For me it’s ridiculous — from a football, social and financial point of view.
“If you want to buy a plane for €150m or a boat, you can do. But for a man? For me it’s bad. It’s not possible. But it’s why we have to do something.
“I’m finding a system where you can spend what you have. If one Sheikh brings €150m for Kaka then you have to put his salary on top of the transfer fee.
“If the club go over their income with the player’s salary plus fee, they can be banned from our competitions because they don’t respect their budget. It’s about a licensing system where clubs spend within their income.
“Clubs who are banned will be replaced by those further down the table of that country who meet the criteria. It’s not to disturb football but to protect it. Many owners have asked me to find a system. I have to do that as president of UEFA.”
Goal.com
I have always frowned upon institutions which are highly leveraged, and that is considering they have operations that support their case. Unlike a sports teams, which have nothing tangible to support its case.
I think I figured it out, how else could Barklay's support the EPL and promote the sport without inflating the cash positions of the clubs ? Sure the clubs in question are only a handful, still their accumulated debt would be classified as toxic assets in any bank's books and provisions have been taken out against those debts. The problem here is not whether the clubs can or can't pay back, its that Barklay's has let this happen and will continue with it, even with the current recession that is starring England in the face; entertainment will always remain the deciding factor for people at Barklays to overlook the danger of such an amassed debt.
I am not saying it is just England, take a good look at Spain too. But I am more familiar with the situation in the EPL, hence I stress more about it ..
If anything, I think Platini should do something about it. Clubs should operate based on the size of their Capital and not Debt.
P.S. .. in Davos, Switzerland a week ago, there was an interview I watched on CNBC with NBA commissioner David Stern - He stressed that the state of the NBA in the states has taken a hit (considering over 12 banks have failed in the US alone) because all NBA teams are highly leveraged.