Reign in Spain 2
The ‘game’ of financial roulette as reported before in this blog needed urgent action in Spain. The Spanish Football League has now announced new rules designed to prevent clubs from overspending.
These regulations include powers to limit the total cost of any clubs’ playing squad – also players registration can be prevented if perceived to be above an acceptable budget – though I don’t yet understand how this is calculated. The Turkish connection portrayed, namely: Deportivo La Coruna is the latest Club to seek assistance to avoiding going bump and has filed for bankruptcy protection.
This move appears another step in the right direction after the earlier agreed protocol to comply with UEFA’s financial fair play (FFP) regulations in the Country. Notably. from 2014 clubs must set up a ‘fund’ totalling 35% of their revenue from media rights to act as a guarantee against any tax liabilities. I’m sure our HMRC would favour such. Furthermore, there is now an obligation for clubs to provide detailed budgets for the following season(s) including information on sales and expenditure, profit and loss and investments or any sales of assets.
Will I need to write about Reign in Spain 3?