Football & Finance Essay Example | Topics and Well Written Essays - 3000 words

Football & Finance - Essay Example The spending on salaries and players was 43 percent up over the previous five years. European clubs assessment is a requirement of Uefa’s financial fair play policies, which focuses on reducing debt and stopping teams from spending above their capability. According to Uefa’s rule of financial fair play, teams that fail to meet the requirements of the union’s policies face sanctions or suspension from participating in the continent’s major competitions. According to 2009, 2010 and 2010 financial reports, many clubs participating at both clubs and European competition levels exhibited significant amount of losses in relation to the Uefa’s minimum low of â‚ ¬5 million. Many European football clubs including top flight clubs have recently shown numerous financial drawbacks adding to recent increase in the total loss experience in the European football industry. There have been public outcries from some clubs regarding financial fair play by some of t he continent’s top division clubs. A considerable number of clubs have undergone liquidation while many more face the threat of possible bans from taking part in Uefa Champions League and Europa League, which are the continent’s most prestigious football competitions. Liquidation is the worst experience any club would ever wish to undergo. Apparently, cost control has been one of the most challenging tasks for European football clubs. Many clubs, including the most famous clubs in the recent history of football, have failed maintain low and sustainable expenditure levels, which calls for robust research into the issue of finance and football. There Owing to the increasing margins of losses incurred by European football clubs and many reported cases of possible liquidations of clubs, there is clear need for information supply for football club managers and committees on sustainable cost management approaches, which this project intends to establish through review of lit erature on some of the main causes of financial dismay for many football clubs. Preliminary Review of Literature The strong economic growth that football industry exhibited during late periods of 1990s prompted academicians and researchers to shift their attention towards issues that relate to the administration of performance of football clubs