Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

EU Commission considers salary and transfer fee cap

Wed 23rd Feb 2011 | Football Governance

EU Sport Commissioner Androulla Vassiliou has described as "incredible" some of the recent multimillion pound transfer fees paid for professional football players.

In an interview with EurActiv, Vassiliou announced that the European Commission will look into the possibility of taking action, including capping fees.

"I am shocked by the recent transfer of Fernando Torres," she told EurActiv at yesterday's EU Sport Forum in Budapest, Hungary.

In January, Premier League club Chelsea broke the British transfer fee record when they paid £50 million to land Spanish international Fernando Torres from Liverpool.

Nevertheless, the Torres transfer didn't even come close to setting the European record. Indeed, it came hot on the heels of other exorbitant fees paid to acquire professional players. Spain's Real Madrid heads the ranking of record purchases having paid around £80 million in 2009 to buy Portugal star Cristiano Ronaldo from Manchester United and £55 million the year before to secure the services of Brazil's Kakà from AC Milan.

The Lisbon Treaty gives the European Commission a mandate to promote "fairness and openness in sporting competitions". Fairness is definitely brought into question if a few clubs can spend on one footballer the same amount of money that other competing teams spend on the salaries of the entire team.

Moreover, a club's financial stability is often affected by these extraordinary outlays. "This will eventually lead from a smaller debt to a big debt, and then a bigger debt, and finally to a mess," Commissioner Vassiliou told EurActiv.

Adding, “that's why I support very much the financial fair play rules of UEFA. This will put into some order the governance of these clubs.”

UEFA, the European football federation, launched in 2010 its Financial Fair Play Regulations which requires football clubs to observe strict financial discipline, including a 'break-even' requirement from 2012 in an effort to penalise clubs with financial deficits.

Vassiliou announced that the Commission is looking into ways to integrate the regulations into the EU. One of the options on the table is to introduce a cap on transfer fees, and the EU executive is currently examining the legal basis for doing so.

The commission is expected to look at the viability of introducing a salary caps, but its capacity to act in this field is even more restricted.

“What we will propose to do is to conduct a study which will start next year.

“It will specifically be focused on the transfers of professional players. We will assess the extent of the problem and its implications.” Vassiliou continued.

"The Commission considers that the time has come for an overall evaluation of transfer rules in professional sport in Europe. It is difficult to find the legal basis, but there might be a way," a top Commission official told EurActiv during the EU Sport Forum.






If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

The Football Business Academy & streetfootballworld Join Forces

Tue 29th Aug 2017 | Football Governance

The Football Business Academy and streetfootballworld join forces to further promote the idea of football for good and ensure that the next generation of football leaders embraces Corporate Social...

London FA Overhauls Board To Reflect Capitalís Diverse Football Community

Fri 18th Aug 2017 | Football Governance

The London Football Association (LFA), the largest of the County Football Associations, is undertaking a transformational overhaul of its Board and inviting applicants from diverse backgrounds to...

Karl-Heinz Rummenigge will not run for re-election as chairman of the European Club Association

Thu 10th Aug 2017 | Football Governance

Karl-Heinz Rummenigge will not run for re-election as chairman of the European Club Association. The 61-year-old informed his colleagues on the ECA board of his decision during their meeting in Madrid...

FC Barcelona Appoint New Strategic Advisor In America

Thu 13th Jul 2017 | Football Governance

Former U.S. Ambassador to Spain and Andorra signs agreement with the club to serve in the new role. FC Barcelona and James Costos, the former United States Ambassador to Spain and Andorra, have signed...