The gulf between European football's rich and poor clubs getting bigger


Ian Hawkey
  • English
  • Arabic

The 2011/12 European Champions League has been unusually diverting. The trouble with Uefa's great juggernaut of a tournament is that its unwieldy group stage can easily turn predictable. But this autumn we had surprises, with the pre-Christmas elimination of two English teams and two Spanish ones. Some underdogs also roared, like Apoel of Cyprus.

Michel Platini, the Uefa president, wants a more level playing field in his club competitions. European football's governing body have introduced their Financial Fair Play initiative, they say, partly with that aim. Clubs should spend in relation to what they earn, it urges. It is a laudable principle in an industry so financially immature.

It also runs the risk of taking some romance out of the sport. The difference in, say, television revenues earned by a club from Croatia or Belgium and one from Spain gets bigger and bigger. Higher up the food chain, so does the difference between the TV income of Valencia and that of Real Madrid. If you can only spend as you earn, the rich will more often bully the poor.

Roaring underdogs are part of the sport's appeal. Many of them now only get to roar when a benefactor, ready to plough money in without expecting short-term financial returns, invests in a club.

When that patron is asked 'Why did you splash out on a flashy winger?' and his answer is 'because the fans wanted it' or 'I just love to watch him play', we may think him a dreamer.

If he is then told by Fifa's financial watchdogs, 'Sorry, your projected revenue streams do not justify it,' he may well go off and find himself another hobby.

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German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat