Some European football teams may go bankrupt within two years

Global management consultants AT Kearney have warned leading clubs in the major European Leagues that they risk going out of business if they continue to pay “enormous salaries”.

The Munich-based company’s Football Sustainability Study, released this week, said that changes need to made to the financial controls of clubs if more cases of bankruptcy and administration are to be avoided.

The report said: “Running as normal companies, the leagues in Spain, England, and Italy would be bankrupt within two years.” It found financial statistics in some leagues as “shocking” because of enormous salaries and went on to describe how the desire to win trophies “encourages overinvestment and extreme risk-taking”.

Source: SoccerExBusiness Daily