MILAN Mandaric, the chairman of Sheffield Wednesday, has welcomed the Football League’s decision to adopt UEFA’S Financial Fair Play System but conceded: “This is long overdue.”
At the League’s annual general meeting in Cyprus last week, the 72 member clubs voted to implement UEFA’s new financial framework, meaning teams in the Championship will only be able to spend what they earn.
Meanwhile, a salary cap will also be introduced and imposed in League One and Two from next year to rein in the spending of its members. Indeed, the new financial regulations are designed to help clubs in the lower divisions balance their books more efficiently. Called the Salary Cost Management Protocol, the cap means only a fixed proportion of total turnover can be spent on player wages. It currently operates in League Two at a 60 per cent threshold but that will be reduced to 55 per cent next term.
Serbian-born businessman Mandaric has told The Star: “Clubs should welcome this system because it will help them sort out their financial problems.
“As far as I am concerned, this should have happened a long time ago. Other countries are doing it and I think it works. I don’t see any reason why it can’t work here.”
It was Mandaric who saved Wednesday from potential financial melt down six months ago and he feels it is high time clubs curb their spending.
“Clubs should not be able to spend money that they don’t have,” he said. “They should make a budget and stick to it.
“It is the supporters who have been suffering the most as they are the ones who have seen their club go into administration or get into financial trouble. They have been the victims.
“This will make it more of a level playing field across the board and help clubs get their houses in order.”
The UEFA model will be launched in the Championship for the start of the 2012-13 campaign. Football League chairman Greg Clarke said the rigorous financial measures agreed were an “important step forward” for professional football.