UEFA decisions affecting Ajax

[LucaS]

There are international standards to which companies must comply; IFRS

http://www.ifrs.com/

[jamcocteau]

Anyway whilst browsing through fourfourtwo after reading the financial article I cam across something which will affect Ajax tomorrow night and could have a major impact on football in future.

Tomorrow night will see games in the Europa League using 5 referees - an additional assistant ref will be beside each goal to assist in decisions such as balls crossing goal line, players diving etc. Seems sensible enough to me

http://fourfourtwo.com/news/restofeurop ... fault.aspx

[jamcocteau]

There are international standards to which companies must comply; IFRS

http://www.ifrs.com/

All countries do not comply to IFRS. Dont want to be a complete bore but this table will show you where and where not it has been complied with for listed companies and unlisted companies. Clearly can see right across Europe for unlisted companies which most football clubs are there is a definite difference of opinion.

http://www.iasplus.com/country/useias.htm

[LucaS]

I'm aware of that, but UEFA could rule they want to see the figures of the clubs based on IFRS. There are lots if companies reporting in a dual way, IFRS and local GAAP

[jamcocteau]

I'm aware of that, but UEFA could rule they want to see the figures of the clubs based on IFRS. There are lots if companies reporting in a dual way, IFRS and local GAAP

Agree, it would make sense but was just thinking of practicalities of it all.

Will smaller clubs be exempt from the regulations. Will a club like Real Madrid which is not a listed company and only has to comply with Spanish GAAP agree to it. If they refused to submit accounts under IFRS would UEFA have balls to throw them out competition. And then we come to clubs like Chelsea made up of various holding companies etc.

I am all for making clubs more accountable financially but this could be a potential mindfield legally for UEFA. Will be interesting to see how they progress on this

Anyway found another interesting table , well got to do something when unemployed. This table shows european clubs listed on stock exchanges etc, not that many really

http://www.transfermarkt.co.uk/en/finan ... oerse.html

[Over Pasanens Head]

What does Mr Platini mean by "finish in the red" - is it the bottom line on the profit and loss or is it that they have net current liabilities?

If it is the profit and loss option then would this be after tax, before exceptional items or many other variations.

A club might go about building up reserves as a strategy for for a future investment in players etc over the following few years which could then provide future profits thereafter. Would this then mean that due to these investments and thus a loss they would be banned when they are accumulating wealth on the knowledge that their policy will produce a couple of bad years followed by good years again.

I think that if such a system is brought in then all you would see would be some very fancy book-keeping by the clubs to hive off the debts etc to companies in the Cayman Islands etc.

Having said all of that something has to be done and I would personally favour the approach that the clubs should have sufficient strength in their balance sheets to meet their current and long term liabilities plus be able to stand on their own feet if the super rich investors go walk-abouts. However, I cannot see that there will be agreement on how any system can be reached by all parties.

[aveslacker]

What does Mr Platini mean by "finish in the red" - is it the bottom line on the profit and loss or is it that they have net current liabilities?

If it is the profit and loss option then would this be after tax, before exceptional items or many other variations.

A club might go about building up reserves as a strategy for for a future investment in players etc over the following few years which could then provide future profits thereafter. Would this then mean that due to these investments and thus a loss they would be banned when they are accumulating wealth on the knowledge that their policy will produce a couple of bad years followed by good years again.

I think that if such a system is brought in then all you would see would be some very fancy book-keeping by the clubs to hive off the debts etc to companies in the Cayman Islands etc.

Having said all of that something has to be done and I would personally favour the approach that the clubs should have sufficient strength in their balance sheets to meet their current and long term liabilities plus be able to stand on their own feet if the super rich investors go walk-abouts. However, I cannot see that there will be agreement on how any system can be reached by all parties.

This sounds good on paper but I don't see any realistic way to implement this effectively. The big clubs will creatively account their way to magic solvency and UEFA won't have the resources to police it. Furthermore, they must know this. So in the end I'm left to conclude that this is basically a public relations move on Platini's part, aimed at currying favor with one constituency or another.

But let's assume for one moment that UEFA manages to put in place an effective means of policing clubs' expenses. How long would it be before the 12 or so biggest clubs broke away and formed their own league? And would that be a bad thing?