• Ban on transfers has also been proposed by Uefa
• Sanctions would extend to Europa League prize money
Europe's elite clubs have formulated a proposal for
tackling those in breach of Uefa's new
financial fair play rules that would lead to transfer bans and
Champions League and Europa League prize money being
withheld.
Although a new regulatory framework has been introduced
governing the permitted level of losses before tax and accounting
charges, there is no policy for what sanctions will be applied to
clubs in violation.
But at the European Club Association (ECA) congress on Tuesday,
an outline for what the clubs perceive to be a workable programme
of sanctions was agreed upon. The conclusion was for clubs who
exceed the current permissible losses of €45m (£40m) over this
season and next to be stripped of Champions League or Europa League
prize money and subjected to a transfer embargo.
Internazionale's director general, Ernesto Paolillo, is a board
member of the ECA and chaired a sub-group that discussed its
response on financial fair play.
"We are all fully behind the financial fair play rules because
we need to make some changes in European football," Paolillo said.
"European clubs were in deficit by more than €1bn last season, so
we need action.
"But we need to see the sanctions now because the rules have
started, so that the clubs know the rules. We think that having a
transfer ban and to have prize money from Uefa withheld are
appropriate penalties for breaking financial rules."
It is not guaranteed that these rules will be adopted, since
Uefa's financial control panel, chaired by the former prime
minister of Belgium Jean-Luc Dehaene, has the final say over what
punitive measures should be employed. It will be meeting over the
coming weeks to finalise applicable sanctions and will give due
weight to the clubs' own proposals.
Whether it will consider appropriate the withholding of prize
money from clubs is perhaps questionable since an enforced
reduction in income could contribute to a spiral of repetitive
default. One other area under the panel's consideration is the
value of sponsorships from related parties.
The financial fair play rules stipulate that these must be
issued at fair market rates. Dehaene has stated that he has sought
information about Manchester City's £300m-plus sponsorship deal
with Etihad, the Abu Dhabi airline.