Premier League chairmen will on Thursday be presented with a range of possible financial controls to limit spending by top-flight clubs.
The league's top executives have produced a discussion paper on financial controls for the chairmen to consider which could eventually lead to clubs being forced to break even every year - or face sanctions.
It would mean a serious blow to clubs such as Manchester City and Chelsea who have return significant losses in recent years.
There is strong support at other clubs for such controls - Wigan chairman Dave Whelan on Wednesday said measures to cut spending were needed urgently, while Manchester United originally sparked the move at the league's meeting earlier in the summer.
No decision will be made on any measures on Thursday - instead two groups of 10 clubs, each with clubs mixed up to reflect size and region, are to be formed to discuss the options in more detail.
Whelan's own club Wigan have also operated at a loss - the Latics returned a net loss for the year ending May 2011 of £7.2million - but even he is in favour of the controls.
Whelan said: "This proposal has come from Manchester United - I think City haven shaken them up a little bit - but I think there should be some controls on spending.
"Some clubs are spending way more than they can afford and get into trouble - look at Portsmouth.
"The Premier League is so big and powerful and there is so much money around that the clubs try and chase it. Something has to be done so we will support these measures."
United's chief executive David Gill has been one of the driving forces behind European clubs accepting UEFA's financial fair play rules for clubs in the Champions League and Europa League to only spend what they earn, and he wants the Premier League to follow suit.
The Football League have also introduced a similar system into the Championship and Gill believes the top flight should bring in similar measures.
Gill said last week: "A lot of clubs would be happy just to introduce the financial fair play regulations into the Premier League now, some wouldn't, but that's a debate that has to have happened. And it will happen.
"If you look at it we've got financial regulations in the league below us, the Championship, and the competition above us, the Champions League, so we need to do it.
"The Premier League being the best league in the world, the most commercially effective league in the world, I think there's a real opportunity to introduce some sensible rules that effectively improve and enhance the long term or medium term financial stability."
At least 12 of the 20 top-flight clubs ended the 2010/11 season in the red with Manchester City's losses of £197million dwarfing even Chelsea's £68million and Liverpool's £49million.
Critics of financial fair rules argue that it will forever favour those clubs such as Manchester United and Arsenal who make a profit and rule out wealthy benefactors such as Roman Abramovich and Sheikh Mansour putting money into clubs.
http://www.teamtalk.com/west-bromwich-albion/8054396/Clubs-to-discuss-spending-limits
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Seems like David Gill is trying to start a system to eliminate outside investment, thus increasing debt.
Presumably City, Chelsea, Liverpool, Villa, Fulham and Wigan would be against this as they've benefitted from investment without debt and Everton are unlikely to encourage a scheme that would deter a new buyer.
Also, as the German system seems to be used as an example more frequently these days, will Gill recommend that clubs should limit ticket prices to a more affordable amount?
FFP? Yeah right.
posted on 5/9/12
I wouldn't wish that on anyone Fellani although it would.do us no harm. Newcastle will be ruined by the fact they will have no.strikers come January. It is hard to second.guess this year. Here is to hoping.
posted on 5/9/12
and Everton are unlikely to encourage a scheme that would deter a new buyer
Everton's need for a new owner may not be as crucial,if all teams abide by the FFP rules. Everton have more than held their own,whilst spending less than their closest rivals (Sunderland,Villa and alike). So if the likes of City and Chelsea have their budget reduced,there's no reason why teams like Everton can't reduce the point gap.
posted on 5/9/12
Fair point to the man above. Do you think that it will be enforced though? I think this is the crux of the matter and peoples opinion on this thread. Seeing is believing. I just don't think it will happen.
posted on 5/9/12
just to clear it up, Chelsea spent like fiends from 97-02 and had Roman (or another investor) stepped in they would have been bankrupt.
Ironically, spending themselves into financial oblivion led to them becoming Roman's project.
posted on 5/9/12
Newcastle will be ruined by the fact they will have no.strikers come January. It is hard to second.guess this year.
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I forgot about that they're actually fked !
posted on 5/9/12
I'm sure they'll buy in January. Plus they've stil got Shola and Sammy Ameobi
posted on 5/9/12
What's the point though? Ba and Cisse will only miss 4-5 games anyway, might as well use Shola/Sammy then. Do we play them in january/feburary by any chance Mr C ?
posted on 5/9/12
We actually do as it goes, away game is 2nd february, ACON is untill the 10th if their team goes all the way. Quality haha !
posted on 6/9/12
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how about ManU suggest that the limit on spending is the same for every club, regardless of how much income they generate.
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Fifty Years,
I sowed that seed already, pay attention!
posted on 6/9/12
United were banging on about wages being linked to success on the pitch until recently.
