Top European Clubs Incur Major Annual Losses

January 25, 2012

Major European clubs have been given a wake up call after it was reported clubs incurred annual losses of €1.6 billion euros (£2bn/£1.3bn) according to Uefa’s latest club licensing report.

The latest figures, for 2010, show overall losses from the leading leagues around the continent are up from 1.2billion euros ($1.5bn/£1bn) the year before – a 36% rise.

Uefa said there were some positive changes including a 6.6% rise in overall income, a small drop in the proportion of clubs’ revenue going on players’ wages, and an increase in the number of home-grown players in the Champions League.

The European governing body said the findings of the club licensing benchmarking report will take on “an increasing significance” with the financial fair play rules starting to be measured from this season and implemented for European competitions in the 2013/14 season.

A Uefa statement said: “The need for financial fair play measures and strong governance is strongly emphasised by the report findings.

“Whilst the level of losses was one of a number of warning signs that confirms the need for football to act, there were some improvements with the 64% percentage of income spent on employee costs, representing a small decrease on the previous year after four years of rising percentages.”