Europe’s top divisions suffered record aggregate losses of more than $2.3 billion for the financial year ending in 2011, according to UEFA’s fifth club licensing benchmarking report published Monday.
The five-year review, sourced from thousands of financial statements from more than 670 clubs across UEFA’s 53 member associations, documents a dramatic escalation in costs, including a 38 percent increase in salaries since 2007 compared to only 24 percent revenue growth in the period.
Combined employee and net transfer costs, in fact, now make up 71 percent of club revenues, a substantial uptick from 62 percent in 2007.
“It is this relentless increase that forms the backdrop to record aggregate losses reported by European top-division clubs,” explains UEFA.
“With the dawning of UEFA break-even rules from the 2012 and 2013 financial seasons, many clubs competing in UEFA club competitions and running deficits will have to strengthen their balance sheets in order to meet the requirements.”
An update on goal-line technology tops the agenda for a March 2 meeting of the International Football Association Board in Edinburgh, Scotland.
IFAB is made up of representatives from FIFA as well as the football associations of England, Scotland, Wales and Northern Ireland. (Getty)
The report will follow testing of two competing GLT systems during the FIFA Club World Cup in Japan last December.
Other talking points include a clarification to the interpretation of offside, the usage of electronic performance monitoring systems and the rules governing a dropped ball.
“The IFAB will also discuss its future consultation and decision-making processes, as well as its future structure,” says a FIFA statement.
“The self-reform of the International Football Association Board was a proposal that stemmed from FIFA’s agreement to major reforms of its governance which were presented to the FIFA Executive Committee at the end of March 2012, and subsequently presented at the FIFA Congress in Budapest last May.”
McDonald’s will help train the massive volunteer force required to stage the 2013 Confederations Cup and 2014 World Cup, FIFA announced Monday.
The commitment, part of the fast food giant’s sponsorship of world football’s governing body, entails developing a special online hospitality training course for those who register to volunteer for the upcoming finals in Brazil.
“We think that by combining our commitment to excellence, we can expect the selected volunteers to deliver high-quality services to all involved with the events,” Thierry Weil, Director of FIFA Marketing, said in a statement.
David Grinberg, Senior Sports Marketing Manager for McDonald’s in Latin America, added: “The Brazilians love football and welcoming people. McDonald’s is proud to make this combination by sharing its successful expertise on customer services, so everybody wins: the tourists, spectators and visitors in general, the event and, most importantly, the host country.”
Upon completion of the course, volunteers will receive a certificate signed by McDonald’s University.
By INSIDER’s Matthew Grayson
Your best source of news about the global football business is World Football INSIDER