PtG Article 30.07.2010

New study predicts bankruptcies in European football clubs

A.T. Kearney has recently released the EU Football Sustainability Study.

The study claims that clubs in the biggest leagues in Europe have the potential to go bankrupt if nothing is done. It argues that unless stricter financial controls are put in place teams in the English, Spanish, German, French and Italian leagues are all at risk.

The report stated that if the leagues in England, Spain and Italy were run like normal companies, the leagues would be bankrupt in two years. The EU Football Sustainability Study blames the astronomical salaries of players for the current crisis that the leagues face. Currently statistics show that clubs spend more on players than they sell players for. A system that appears to be encouraging over-investment and risk taking in pursuit of success.

To read the full report, click here.