• Chelsea and City could be barred from Champions
League
• Uefa wants pair to scale down losses in next four seasons
Roman Abramovich, the Chelsea owner, faces a threat
over the club's losses from Uefa.
City and Chelsea have declared losses in the year
to June 2009 of more than £130m.
Uefa confirmed it is adding the "financial
fair play" rules to its statutes in time for the 2013-14
season
Manchester
City and Chelsea face being excluded from the Champions League
unless they can work the huge losses both have announced over the
past seven days down to break-even levels within four
seasons. Uefa is working up formal regulations that will
entrench Michel Platini's plan to ensure that clubs operate without
making significant long-term losses. "If a club gets a lot of money
or subsidies from a big backer and is still in deficit in two years
then it is a problem and we don't want that," Platini said in
August.
Two days after those comments, the European Club Association
(ECA) approved Platini's proposals and Uefa privately confirmed
yesterday that it is adding the "financial fair play" rules to its
statutes in time for the 2013-14 season. The delay in the
implementation was yesterday described as an effort to provide
clubs a "soft landing", but Uefa firmly envisages that clubs who
fail to meet the regulations will be prevented from taking part in
its competitions.
Since the biggest clubs generate interest and revenue for the
Champions League, the suspension of those such as Chelsea and City
would be a test of resolve. But Uefa has been emboldened by the
broad ECA support, and insiders at Uefa are bullish.
"There needs to be a business model for breaking even within
three and a half years," a source said. "The deadline is what it is
and we will stick to it; we have tremendous support from the
clubs."
Between them City and Chelsea have declared losses in the year
to June 2009 of more than £130m. Chelsea's chief executive, Ron
Gourlay, has abandoned a specific target date for break-even,
reassessing it as an aspiration.
Turning Chelsea into regular title challengers has cost Roman
Abramovich £500m in cumulative losses. City have not shrunk from
that target, spending £117.5m on transfer fees last summer and an
estimated £30m a year in wages for Emmanuel Adebayor, Carlos Tevez,
Kolo Touré, Roque Santa Cruz and Joleon Lescott. But, crucially,
Sheikh Mansour's club start from a weaker base.
When Abramovich bought Chelsea they were already in the
Champions League and had a turnover of £153.6m, £66m – or 73% –
more than City have. And City's prospects for raising extra
revenues from ticket sales do not look great. Their attendances
have risen more than 3,000 from their season average to 46,000,
but, right up until its postponement, there were about 400 seats
available on general sale for the Carling Cup semi-final against
Manchester United: City's first last-four place since the 1981 FA
Cup.