Ex Spurs’ owner Alan Sugar reluctantly praised Arsenal for keeping its finances in order, and living within its means in a BBC2 documentary.
The documentary billed as Alan Sugar’s solution to football finances, didn’t bring much new to the table, but regurgitated existing ideas, like a salary cap (which ANR was campaigning for in the nineties) and a Trust Fund.
Despite being beamed into more than 500 million homes around the world, the Premiership has staggering debts of £3.3bn.
Nearly all those interviewed pointed to wage inflation as the major problem. West Ham’s Karen Brady said that competition drove wages higher.
Michel Platini’s proposals to limit what clubs spend to what they earn is a form of indirect salary cap for those in the Champions League.
Premier League’s Richard Scudamore said that the rest of the Premiership couldn’t agree on whether to have a flat fee system or a percentage of turnover for the domestic league.
The effects of financial fair play can be seen with fossil fuelled Manchester City.
The accounts for the year to May 31, 2010, show that City made losses of £121m. Wage costs were £133m. The club’s turnover was £125m. The club has spent £270m in the past two summer transfer windows. And losses are rising.
From next season only losses of £39m will be allowed (for the following three years), which reduces to around £25m from 2015-16.
So they will have to sell to buy and incur losses in doing so.
A place in the Champions League, along with stadium and commercial income will take on greater importance next season. And Arsenal with a 60,000 capacity stadium currently has an advantage over several rivals, including Spurs at 36,000.