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Premier League's transfer market bubble set to burst

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AFP London
Last Updated : Apr 20 2020 | 9:18 AM IST

The financial squeeze put on Premier League clubs by the coronavirus crisis could be felt across the continent in the coming months as the well to fund massive transfer fees runs dry.

For each of the past four summers, Premier League clubs have flexed their financial muscle to splurge over 1 billion pound (USD 1.3 billion) on transfers.

That has helped spread the wealth of television contracts worth billions across Europe and crucially down the divisions to cash-strapped clubs in England. Now even the world's richest league is facing economic meltdown.

Premier League matches have been suspended indefinitely with no return expected before mid-June at the earliest.

Broadcasters could be due a rebate worth a reported ?762 million if the season is not completed and, even when the games do recommence, they are likely to be behind closed doors, quashing income from gate receipts.

Moreover, a number of major sponsors such as airlines and gambling companies have been just as badly hit by the COVID-19 shutdown, which is expected to lead to a curb on commercial revenue.

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Rather than the usual arms race for talent, Premier League clubs are fretting about just meeting their wage bills for the next few months.

"Many clubs could be threatened by insolvency and transfer plans came to a standstill for most clubs because of the many uncertainties," said Matthias Seidel, founder of Transfermarkt, a website specialising in transfer values.

According to Transfermarkt, 1.8 billion euros ($2 billion) has already been wiped off the value of Premier League squads.

"There's no doubt the actual value of players right now has gone down in all squads," said Brighton owner Tony Bloom.

"How much less, I have no idea. It depends on how the next few months play out."
- 'Vultures and predators' -
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Bundesliga chief executive Christian Seifert told the New York Times earlier this month that the transfer market will "collapse" and that "some leagues will understand that money is nothing that is coming automatically every month from heaven."

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First Published: Apr 20 2020 | 9:18 AM IST

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