'Confident': Tom Burwell on UEFA financial rules and what European football means for Sunderland
It’s set to be a busy summer on Wearside as the club prepare to play in European competition
Tom Burwell says he is confident that Sunderland can work within UEFA's financial fair play rules as the club prepare for their first European campaign in over 50 years this summer.
Sunderland sealed a spot in the Europa League on the final day of the campaign with a brilliant win over Chelsea, with a seventh-placed finish in the Premier League meaning they will land a bumper payout in TV and prize money. They will also benefit financially from playing in European competition next season, both through prize money and also the prospect of a number of additional games at the Stadium of Light where interest in the city will be huge.
However, qualifying for European competition does bring with it one significant challenge. Whereas the Premier League Squad Cost Ratio rules coming into force this summer allow clubs to spend 85% of their revenues on first team squad costs, UEFA's rules limit spending to 70%. A number of Premier League clubs have fallen foul of these rules in recent years, and have been forced to pay fines as a result. It means that Sunderland are faced with the challenge of improving the depth of their squad while facing stricter restrictions than some of their immediate competitors in the top tier.
While Sunderland's interim CEO admits the rules will be a factor in this summer's business, he says the club is in a good position and is particularly confident that they will not prevent the club from being competitive in the Europa League itself. Sunderland are predicting revenues of around £200 million this year after a hugely successful return to the Premier League.
“I think we benefit hugely from the fundamentals that sit below this club," Burwell said.
"Without talking specifics, we’re in a really strong position from a revenue point of view and that means that we’re not entering into this like a more normal freshly-promoted football club that might be sitting with completely different revenue numbers. We’re able to go in confident, knowing that it is a lot of work and we have to be clever and cute, doing the things that are appropriate, but also that we come from a position of strength that means we’re able to act appropriately.
“If I put it in context, as financial regulations have become more and more apparent in this game, if you look at some of the teams that will be in the Europa League – Juventus, AC Milan, Benfica – then they’ll have bigger revenues than us. But I’m not sure anyone else in the competition will. So, whatever rules we’re facing, everybody is facing, which means we can go in confident, be ourselves, operate appropriately and make sure we behave within the rules.”
The Echo has launched a new WhatsApp SAFC Channel to bring the latest news, analysis and team & injury updates direct to your phone. Simply click this link to join our SAFC WhatsApp channel.
What European football means for Sunderland’s financial position
Sunderland face a hectic summer seeking to capitalise on the opportunity presented by Europa League football. A key part of Burwell's role is to build the club's revenues to allow for reinvestment into the first team squad and the increased exposure will be invaluable in that regard.
However, Burwell says it is vital that the club build sustainably and don't overstretch. While European football has very much been part of the club's medium to long-term planning,
“We’ve spoken at length about the opportunity that sits in front of the club in terms of exporting Sunderland to the world," Burwell said.
"It’s an absolute core principle of how we create commercial uniqueness within the league. The Premier League is the tide that rises that ability to speak to the world, and European football gives us the ability to do so further. Even if you just look at it from a fixture point of view, we’ve got a minimum of eight games where we’re able to communicate to a completely different audience what is so unique about this football club, this city, this community and this team.
"For me, you can then turn that into real commercial opportunity," Burwell added.
"It’s not something that will happen overnight, but we absolutely see a fundamental movement in our commercials as a result of being in Europe. However, you need to normalise that and not have a situation where it goes up wildly but then you’re wildly flying back down [revenue wise].
"We need to build that appropriately, and you’ll see that come through the season. This isn’t something we had directly planned for in the short term, but it is something that we had planned for in the long term, so taking advantage of it is important."