Zeenews Bureau
London: A recent report by UEFA, which suggests that the Premier League clubs owe more than all the other European clubs put together, has raised fresh concerns over the financial mess that most of the English clubs find themselves in.
The report analyses the 2007-08 accounts of a total number of 732 clubs licensed by UEFA, which puts the debts of 18 Premier League clubs at a humongous 3.5 bn pounds, a figure almost four times more than the debt of the second ranked La Liga in the list.
The debts could have been much higher if UEFA had not refused to grant licenses to the two most debt ridden clubs in the league, Portsmouth and West Ham.
The findings come as a bit of a surprise, especially considering that the Premier League raked in much more money from TV and other commercial incomes than any other league.
In an interview last year, UEFA president Michael Platini had said that the English Premier League clubs and others must stop amassing huge debts and new regulations will be drawn up to regulate team finances.
"We have three years to regulate the situation," he said. "The idea is not to kill the clubs but to help them have better balance. The philosophy to participate in our competitions is you must not spend more money than you receive.”
"If (Manchester) United have 300 million euros (USD 439 million) and they spend 400 million -- no! If Liverpool pay 60 million euros (interest) every year to the banks, it's a lot of money.”
"Every owner has asked me for a better philosophy, for better transparency. In Germany, debts are not accepted. In England they are."
"By putting in new rules we will protect the business of (Chelsea owner Roman) Abramovich, Massimo Moratti (at Inter Milan) or Manchester United owner (Malcolm) Glazer.
"I am sure they want to sell but who will buy clubs with so many debts? Who would be that stupid? If you regulate the system, many people will be interested in buying. I am not a big economist but I am logical."
First Published: Wednesday, February 24, 2010, 14:35