Quote:"The new rules would threaten the participation of Manchester City, who made a £93million loss last year, in European competition as well as Chelsea - who made a £47m loss - unless they change their spending habits. "

But Manchester United insist they will pass the new UEFA 'financial fair play' test, despite making a £93m loss last year.


Q: What are UEFA's financial fair play proposals?

A: UEFA have decided that all clubs who want to play in European competition can only spend what they earn.

Q: Does that mean if any club makes a loss they are barred from European competition?


A: Not exactly - they have to show they are breaking even over a three-year period. There is also some flexibility with losses of up to £38million over three years allowed from 2012-15, and then £26m over a three-year period from then.

Q: What do the financial fair play rules say about debt?

A: The rules will not outlaw debt, but they do insist that any interest payments are taken into account when working out spending against income.

Q: Which Premier League clubs have most to fear?

A: Manchester City, who made a £93m loss last year, and Chelsea who made a £47m loss. Arsenal and Tottenham are fine, while Manchester United say they will pass the test, while Liverpool could do so too.

Q: What about clubs in the rest of Europe?

A: Barcelona do have big debts - around £420m - but they have been able to service them. Real Madrid's position is unclear - they say their debt is less than £300m, while some analysts put it at £609m, which would cause them problems passing the test.


Q: Who will actually decide which clubs have passed the financial fair play rules?

A: The Football Association and Premier League initially will issue the licence to English clubs. An independent panel appointed by UEFA called the Clubs Financial Control Panel will make spot-checks to ensured the rules are being adhered to.

Q: What about 'sugar daddies' such as Sheikh Mansour at Manchester City - can they write off the club's losses?

A: No, because that would be seen to be an unfair advantage. Rich benefactors will be allowed to invest in the fabric of clubs however, such as building new stadiums or academies.