UEFA Kick Off Financial Fair Play Rules
Brussels, 2 June 2010
Clubs Will Have To Break Even From 2015
One of Timothy's roles is to sit on the European Parliament's Culture and Education Committee. This week the Committee discussed plans for the EU to regulate the use of the internet and Public Service Broadcasters and plans to tackle debt in European football.
After a visit from William Gaillard, UEFA's Director of Communications, Timothy outlined his concerns about UEFA proposals to monitor the financial performance of football clubs. The plans would see the game's governing body in Europe banning clubs from its competitions if they did not match expenditure to revenue, in short if they did not break even.
After a bedding in period of three years, the rules will enter into force in 2015. They will apply to all clubs, and UEFA President Michel Platini hopes they will create a level playing field for football clubs across Europe.
Timothy said:
"I am pleased that UEFA have decided to tackle the problem of football club finances. Clubs, like countries, need to live within their means.
"And yet, I would like to have seen more clarity in the proposals. I think that some of the exemptions might create loopholes that could be exploited by the clubs. I also think that UEFA could have focussed more on the problems caused by private investment, which have caused so many clubs in Britain to overstretch themselves. It also seems that UEFA were bullied into watering down their plans by the clubs only days before the announcement.
"I hope that top British clubs like Manchester United and Liverpool work to get their debt under control. If they don't, they could be thrown out of competitions such as the Champions League and the Europa League."
Fairer Transfer Rules Will Help Your Club
Timothy also welcomed a landmark ruling on football transfers that local football clubs in Yorkshire and across Europe can seek compensation if they have trained a player, then they sign a professional contract in another EU country.
Timothy said: "This ruling will encourage local football clubs in my constituency like Leeds United, Bradford City, Hull and Rotherham to continue investing in young talent without the fear of their cash being used for another club's gain."
The new rules originate from a case taken up by a player who played in North East. Olivier Bernard signed a youth training contract with Olympique Lyonnais in France. At the end of the contract he decided not to take up the offer of a professional contract with the club, and signed a contract with Newcastle United instead.
At the time, the French rules required players with such training contracts to sign with the club if offered a contract. The French club sued Mr Bernard and Newcastle United in the French courts. The French court asked the ECJ whether this provision is a restriction on the free movement of workers, under EU law.
This week the court said that the French rule was a restriction on free movement but that the restrictions can be justified in certain circumstances such as the need to encourage investment in young players.
Speaking from Brussels this week Timothy said,
"The EU should recognise the unique nature of sport and this ruling supports that. In certain circumstances the EU's internal market rules should apply to football but the majority of the rules surrounding player transfers should be set by the governing bodies who understand their sports.
"Had the Court ruled the other way, we could have seen a root-and-branch shake-up of the entire player transfer system to the detriment of local football."
