Football is like any other business in England, the recession and economic downturn has seen a decline in revenue with ticket and merchandise sales falling. As a consequence clubs are looking at new ways to keep their costs down while still maximising revenues.
Increasing debt levels and unsustainable wage bills for leading clubs has forced the Uefa’s Financial Fair Play rules that will change the financial outlook for Premier League clubs. They are no longer taking their situation for granted and are instead trying to securing their long term future at the top of the English game.
Only 20% of Europe's leadind clubs turn a profit said Uefa President, Michel Platini who has introduced the FFP rules to encourage a more sustainable business model. The rules, designed to ensure clubs live within their means over a rolling three-year period, prohibit clubs sustaining losses of more than £40 million during this time.
While millions more was spent during this year’s summer transfer window than in the last, it still feels that change in on the way in Premier League with a widespread policy of buying now as an investment for the future.
This can been seen with the fact that more money was spent on English players that ever before and a higher percentage of transfer fees went to clubs based in England with an increasingly trend to buy young English players. Manchester United’s Phil Jones, Arsenal’s Alex Oxlade-Chamberlain and Sunderland’s Connor Wickham were just some of the young English talent purchased in the summer by top clubs in the country.
Despite the £485 million lavished by Premier League clubs during this summer’s transfer window, there was still an increased financial restraint on managers with numerous clubs attempting to reduce their wage bill by clearing out surplus players on loans and free transfers in an attempt to cut their overinflated squads.
Football financial prudence has to be implimented to secure the long term future of the game.