On the same day as the PL Chief Executive Officer Richard Scudamore presented hints of financial rules for teams in the PL, UEFA executive committee passed a set of financial rules on how clubs should be run.
UEFA says that these rules are put in place to "improve the financial fairness in European competitions, as well as the long-term stability of European club football".
The rules, packaged under the catchy name "Financial Fair Play Concept", will be implemented over three years and have one fundamental object.
Clubs who's turnover is over a certain threshold cannot repeatedly spend more than they make.
Disguised as the best friend of clubs in financial difficulties UEFA then offers help on how to set salaries and how to spend just right on transfers...
These rules are presented as being suggested to UEFA by the Professional Football Strategy Council (PFSC) and supported by the Club Competitions Committee following approval by the European Club Association Board (ECA), mainly, I think, to show us all that UEFA has a heavy backing. (Read about the agreement between PFSC and ECA HERE)
UEFA does not go into any detail, leaving the field open to speculation, e.g. about what is the turnover threshold and what steps will be taken during the first two years.
It's clear, however, that UEFA will implement the first step of the rules for the UEFA competitions of 2012/13 i.e. they will not let teams enter their tournaments unless obliging to them. The level of the turnover threshold will most likely be around what is common for clubs qualifying for the Champions and Europa league.
One may say that UEFA, by holding the key to their lucrative tournaments, pretty much can dictate the rules for how clubs are run in Europe and I'm sure that "le président de l'UEFA" feels this is the natural way of things.
As the UEFA set of rules unfortunately may not affect us as we most likely will not qualify for any UEFA competition, the PL rules is of greater interest for West Ham fans. I'll be back on the financial rules suggested by the PL when there is decent information on it.