THIRD OF DUTCH CLUBS IN FINANCIAL PROBLEMS

5 Auguts 2010-

A total of 13 of the 37 professional football clubs in the Netherlands are in serious financial difficulty and

under the supervision of the national association, the Koninklijke Nederlandse Voetbalbond (KNVB).

 The clubs under KNVB supervision include five from the premier division and have been given three years to get their finances in order or losing their licence. Around 80% of club’s income goes on salaries, and earlier this year the KNVB published a major report on how clubs can cut spending and boost their income.

 The KNVB has named the clubs public for the benefit of supporters and sponsors and AGOVV, Almere City FC, Cambuur Leeuwarden, Excelsior, Feyenoord, Fortuna Sittard, MVV, N.E.C, RBC Roosendaal, Roda JC, RKC Waalwijk, BV Veendam and Willem II are under supervision. Other clubs identified by the KNVB as needing to take action include: ADO Den Haag, AFC Ajax, AZ, FC Den Bosch, FC Dordrecht, FC Eindhoven, FC Emmen, De Graafschap, FC Groningen, Helmond Sport, Heracles Almelo, NAC Breda, PSV, Sparta Rotterdam, FC Twente, FC Utrecht, bv Vitesse, VVV–Venlo, FC Zwolle. Those rated as financially secure are: Go Ahead Eagles, sc Heerenveen, Telstar, FC Volendam.

NEW PREMIER LEAGUE RULES INTRODUCED

The Premier League has introduced a host of tough new ownership rules in an attempt to avoid a repeat of the financial meltdown at Portsmouth that has embarrassed the competition. New rules on club ownership that will require all prospective owners to give the league 10 days' notice of a takeover and to meet league chiefs to prove they have sufficient funds to sustain the club have been introduced and the league has reportedly already spoken with one of the bidders interested in buying Liverpool. Other rule changes will see clubs needing to provide evidence on a quarterly basis that tax payments have been made to Her Majesty's Revenue & Customs (HMRC), which has issued a strong of winding up orders against British clubs recently.

The ownership rules were called the 'fit an

d proper persons test' and widely derided but have now been retitled the 'owners and directors test' and anyone barred from other sporting organisations or competitions will not be able to become a club director.

Premier League chief executive Richard Scudamore said: "We believe we have the measures now in place, the early warning system, that will reduce the risk of having a repeat of the Portsmouth situation. The objective of the Premier League is to reduce risk and try to prevent the worst happening but we can't eliminate risk entirely as that would involve us interfering as shadow directors in the running of clubs.

There was reputational damage with the situation we had with Portsmouth. Clubs get tired of football being called a financial basket case. There was an element of gross mismanagement [with Portsmouth] and people have understood it was the exception rather than the rule." Scudamore also admitted in comments reported by the BBC that the Premier League is partly to blame for England's World Cup failure in South Africa but not fully responsible. "We want the England manager to be spoilt for choice, we will take some of that responsibility," he said. “But ultimately we don't pick the team, motivate them or organise the set-up, that's where our role ends." Scudamore insists that the aim of the Premier League is to provide top-class competition regardless of players' nationalities.

Last season, around 42% of players in the Premier League were eligible for England. Scudamore added: “If you go too far and try to artificially prop up English talent which isn't good enough it won't get the league or England anywhere. Populating our league with players who aren't good enough to compete with the world's best won't be good. We have to make sure development systems are bringing through enough players of world-class talent. We're only a small island, we have to be realistic - there are, I think, 217 countries registered with FIFA.

That's a lot of people playing football and England don't have a God-given right to win every tournament. But what every England fan should expect is that the players we do produce are world class and able to compete. They should be able to give world class performances at these tournaments - that's our focus." The rules come as Portsmouth are forced to wait until Thursday to discover if an appeal by HMRC over the club’s attempt to come out of administration has failed. HMRC claims to be owed £13 million more than the £24 million tax debt cited by Portsmouth's administrators and if the appeal against the club’s attempt to come out of administration succeeds, Pompey could face a further points penalty and the threat of liquidation.

Gregory Mitchell QC representing HMRC told the High Court on Tuesday that the club were operating a "sham" to avoid paying more tax. He accused the club of paying players via image rights instead of salaries, meaning they would not have to pay tax on their earnings as they could be deposited in offshore accounts. "[Pay-as-you-earn tax] should have been paid," Mitchell is reported as saying in the Daily Echo. "For some years the club has entered into sham agreements under which players were being paid in respect of image rights when in fact there was no commercial basis for it. It was a way in which the club could pay the money into a tax haven." If High Court judge Mr Justice Mann finds in favour of HMRC and Portsmouth exit administration without agreeing a Creditors Voluntary Agreement, the club could be docked 15-20 points by the Football League.

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