In-debt clubs face prospect of transfer ban

Premier League clubs will have to get their financial house in order - or face the prospect of being banned from making transfers. The new rules unveiled yesterday mean clubs will have to provide their annual accounts to the Premier League by March 1 every year, showing they do not have outstanding tax debts, or debts to other clubs. Sanctions will include a transfer ban and restrictions on contract talks.

With a worry over escalating debt, Richard Scudamore, chief executive of the Premier League, said the move is aimed at ensuring clubs remain in control of their finances and avoid the risk of going into administration. "It is absolutely essential that these clubs are run as viable, going concerns," he said. "We would far rather intervene than risk a club going into administration. The whole purpose of this is to protect the viability and sustainability of the clubs.

"At all times the board of the Premier League will be applying a test which basically says this: can the club fulfil its fixtures, pay off its creditors when they are due and also to meet obligations to the Premier League's contracts and partners? "If the board believe a club is at risk of not meeting those obligations, it has to then step in and agree a budget for the running of that club. Any transfers can be embargoed. Expulsion is the ultimate sanction, but it's about prevention, not cure. Contrary to what many people think, the clubs from a financial point of view are well run."

But the Premier League could be on a collision course with Uefa as their proposals may not meet entirely with Michel Platini's approval. The Uefa president is eager for tougher sanctions against clubs who spend more than they make from revenue, such as ticket sales and television deals. Platini has been vociferous on this issue and demanded clubs do not become over-reliant on rich benefactors or incur massive bank debts.

Punishments from the European governing body could include exclusion from competitions such as the Champions League. A Uefa executive committee last night approved the plan, which would start in 2012, and Platini said: "We don't want to kill or hurt the clubs. On the contrary, we want to help them in the market. The teams who play in our tournaments have unanimously agreed to our principles. The only people who want fewer rules are the ones who line their pockets."

But Scudamore is unconvinced the Premier League clubs will accept Platini's idea. Gerry Sutcliffe, the Sports Minister, is another as he welcomed the new direction English football was heading. He said: "The Premier League's new rules can only be good for the game. We were concerned with the financial governance at clubs and the element of home-grown players and it is now being addressed by these announcements.

"But when it comes to the Uefa's proposals, we have to find a compromise. You can't compare like for like. The French league and the Premier League are different in the way they work and Uefa have to understand this. "I hope that will be the case gand we will work with them on this. There is no problem with foreign ownership or investment as long as clubs are sustainable. "What we want long term is a league with the world's best players, clubs that are in healthy financial shape and that we have a strong national team with more home-grown talent coming through the clubs.

"Of course it might take time, but we are working together and making good progress towards achieving that." [e-mail]