The financial crackdown on Premier League clubs by the coronavirus crisis could be felt across the continent in the coming months as well the fund tracks massive transfer fee [123 ] sec.
for each of the past four summers, the Premier League clubs flexed their financial muscles have to make more than 1 billion pounds splurge ($ 1.3 billion) on transfers.
This has helped to promote the dissemination of television contracts billion in Europe and crucial down the divisions clubs short of money in England.
Now, even the richest championship economic crisis facing the world.
Premier League matches have been suspended indefinitelyment without return expected by mid-June at the earliest.
broadcasters could be due a refund value reported 762 millionslivres if the season is not completed, and while the games begin again, they may be behind closed doors, income has canceled recipes door.
In addition, a number of major sponsors such as airlines and game companies have been hit hard by the Covid 19-stop, which should lead to a brake on commercial revenues.
instead of the usual arms race for talent, the Premier League clubs are fretting about just meeting their salary bills for the coming months.
“Many clubs couldbe threatened by insolvency and transfer plans came to a stop for most clubs because of the many uncertainties, “said Matthias Seidel, founder of Transfermarkt, a site specializing in the transfer values.
According to Transfermarkt, 1.8 billion euros ($ 2 billion) has been wiped off the value of the Premier League teams.
“There is no doubt the real value of the players right now disappeared all squadrons,” said the owner of Brighton Tony Bloom.
“how much less, I do not know. It depends on how the next few months to play out.”
‘vultures and predators
This uncertainty has led calls for faire transfers disappear completely to avoid unseemly for clubs that have asked staff to take pay cuts and in some cases, relied on government money, spend money on new players.
“If you try to get 30 percent pay cuts of existing players, you may need to put an embargo on the transfer in place,” former Manchester United captain Gary Neville told Sky Sports.
HOWEVER, embargoes can accelerate fears that lower clubs of the pyramid will not survive the crisis.
The transfer of the sale proceeds are commonly used in the lower leagues to cover operating costs and will be requireds even without regular income from gate takings to count.
“I think there will be a significant deflation transfer fee,” football finance expert Kieran Maguire told AFP.
“There will be a significant number of clubs when some form of transfer market performance, they will be close to going out of business and therefore accept fire sale price.
“the vultures and predators pick good players for very modest costs.”
fear for those who depend on transfer fees, however, is that the damage has already been done. [123 ]
Given the large sums involved, the transfer fees are often paid in the contract of a player.
on the basis ofaccounts published at the end of the 2018-19 season, the Premier League clubs were 1.6 billion pounds in the current transfer payments, 900 million pounds was foreign clubs.
Maguire warns against the domino effect in which if a club fails to meet its debt transfer, it could trigger a series of overdue payments on other offers or even worse effect in clubs insolvency.
“the problem is that the financial problems in a league could spread throughout the industry as the pandemic,” Maguire said.
Bundesliga CEO Christian Seifert told the New York Times earlier this month that the transfer market “collapse” and that “some leagues understand that hasrgent is nothing that comes automatically every month from heaven. “
This may have been a slight over overindulgence of the Premier League over the transfer fee.
But as the biggest spender, the economic earthquake felt by English football will spread throughout Europe for some time to come.