Economic crisis from virus pandemic begins to bite in European football

In Germany, players at Borussia Moenchengladbach were the first in the Bundesliga to propose pay cuts, followed by others at Werder Bremen, Schalke and Borussia Dortmund. Bild reported that Bayern players accepted a 20 percent pay cut.

– Collapse of the system –

The Spanish Football Federation has announced plans for a 500 million-euro package allowing clubs in the top two divisions to receive loans of up to 20 million euros “and pay it back in five or six years”, according to president Luis Rubiales.

Barcelona have the biggest revenue in world football according to the most recent Deloitte Football Money League, but they are reportedly in discussions to bring in pay cuts for all players of up to 70 percent.

La Liga is considering reducing players’ salaries on the whole by 20 percent if the season is not completed. Similar measures could be taken in Italy.

In England, the Premier League is understood to have been in discussions with the Professional Footballers’ Association about deferring wage payments.

Everywhere authorities are working to stop the whole system from collapsing.

In Italy the possibility of taxing betting companies to help subsidise clubs has been considered, while in Germany rules on how licenses are awarded to professional clubs could be relaxed.

The biggest uncertainty, though, surrounds when matches might be played again.

If a way is found to finish the season before the summer, then the damage will be limited.

However, if the shutdown continues until August or later, the financial impact could mean the footballing landscape across the continent is changed forever.

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