UEFA Withhold 23 Club’s European Prize-money for Unpaid Debts

By Community | September 11, 2012

UEFA have announced that they are going to withhold 23 clubs’ share of European prize money due to their failure to pay debts to other clubs or tax bills.

Sporting Lisbon, Fenerbahce, Malaga and Europa League champions Atletico Madrid are among the clubs not to have provided UEFA with the required information, but there are no British sides on the list.

The sanctions follow the first elements of UEFA’s financial fair play rules coming into force regarding unpaid debts, with the prize money temporarily withheld pending further investigation.

The action was taken by the UEFA Club Financial Control Body (CFCB) investigatory chamber, chaired by former Belgian Prime Minister Jean-Luc Dehaene.

UEFA said in a statement: “The clubs participating in UEFA club competitions had to provide information regarding the status of any overdue payables as at 30 June 2012.

“The CFCB investigatory chamber has identified that important overdue payables towards other clubs, and/or towards employees or social/tax authorities existed in 23 cases.”

Daniel Geey, Sports law expert at Field Fisher Waterhouse, explained to iSportconnect the nuances of UEFA’s new stance.

“The withholding of prize monies by UEFA is for breaching the overdue payables provisions of the UEFA licensing regime (i.e. outstanding debts to other clubs, employees and social/tax authorities).

“Interestingly, there does not appear (in the press release) to be any expulsion from competition sanctions. This may occur however if clubs do not pay their outstanding debt by 30 September.”

“The FFP ‘break-even’ part of the regulations kicks in for the 13-14 season. It is important to stress is that these sanctions are not about breaching the break-even criteria.”

“Nonetheless, big clubs have been sanctioned like Atlético de Madrid, Málaga,Sporting, Rubin Kazan, Partizan and Fenerbahçe. Many may suggest that this is a show of strength by UEFA i.e. that it means business by imposing such sanctions.”

Comment.

NO comments

Leave a Reply