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Platini warning over club spending

UEFA president Michel Platini warned that football could “financially implode” unless transfer fees and wage-spending is capped.

Platini’s comments are believed to have been prompted by the global financial crisis and Manchester City’s offer of around £90 million and wages in excess of £250,000 per week for AC Milan forward Kaka during the January transfer window.

“European clubs are currently telling us that our system is in danger of financially imploding in the medium term.” Platini said in a speech at the European Parliament in Brussels.

“We are currently looking at the idea of limiting, to a certain degree, a club’s expenditure on staff – salary and transfer fees combined – to an as yet undecided percentage of its direct and indirect sporting revenue.”

Earlier this month, the European Club Association (ECA) representing 137 leading teams such as European and World champions Manchester United said it did not support salary caps.

The head of European football’s governing body added that sports in the United States “have coped with the financial crisis better” and that European counterparts could learn lessons from US sports regulators.

“Our American friends have known for decades that sports competitions are only attractive if they are well balanced and if no one team possesses the ultimate weapon,” he said.

Platini told lawmakers that under his proposals clubs would not be allowed to spend any more than 50 to 60 per cent of revenues on wages and buying players.