Football's transfer industry to a halt
No one knows when next season might be, and the financial impact on football clubs, and therefore the transfer market, is likely to be significant.
With football having ground to a halt because of the coronavirus pandemic, the usual transfer rumour mill has fallen silent and no one cares much where Neymar or Paul Pogba might be playing next season.
A study by KPMG last week estimated that cancelling the rest of this season would cost clubs across Europe's top five leagues as much as four billion euros (N$75.2 billion) in lost revenue.
The knock-on effect could be enormous, trickling down to smaller clubs worldwide.
Will the season end?
Uefa's commitment to ending the European season by 30 June was surely partly because it is common practice for contracts to run until that date.
Players like Manchester City's David Silva will be free to leave on 1 July, even if the season has not been completed.
Fifa has set up a working group which could amend rules on transfers and make changes to “protect contracts for both players and clubs”.
However, clubs are already having to take drastic action to stave off financial disaster.
Some French sides, including Lyon, put their players on short-time working as a means of saving money. Swiss outfit Sion cancelled the contracts of nine players who refused to go on temporary unemployment.
Out of contract players
Meanwhile, young players who are out of contract are a problem, points out David Venditelli, a French agent whose company Score represents Arsenal's Alexandre Lacazette, among others.
“Things are on hold for these players who are in a precarious position. They are the ones who are the most in danger,” he said.
More free agents might find themselves on the market, but the biggest Champions League stars are unlikely to be impacted.
Market change
Elsewhere, the dynamics of the market may change. “In some ways, people will be eyeing up bargains,” said an agent with in-depth knowledge of the British market. “A distressed club becomes a motivated seller, so there will be a fire sale of a distressed club selling its assets.”
However, the reality is that nothing is happening right now.
“Nobody wants to get involved in that sort of thing now. Our primary job at the moment is to make sure all our staff are looked after,” says Jonathan Barnett, whose clients include Gareth Bale.
NAMPA/AFP
A study by KPMG last week estimated that cancelling the rest of this season would cost clubs across Europe's top five leagues as much as four billion euros (N$75.2 billion) in lost revenue.
The knock-on effect could be enormous, trickling down to smaller clubs worldwide.
Will the season end?
Uefa's commitment to ending the European season by 30 June was surely partly because it is common practice for contracts to run until that date.
Players like Manchester City's David Silva will be free to leave on 1 July, even if the season has not been completed.
Fifa has set up a working group which could amend rules on transfers and make changes to “protect contracts for both players and clubs”.
However, clubs are already having to take drastic action to stave off financial disaster.
Some French sides, including Lyon, put their players on short-time working as a means of saving money. Swiss outfit Sion cancelled the contracts of nine players who refused to go on temporary unemployment.
Out of contract players
Meanwhile, young players who are out of contract are a problem, points out David Venditelli, a French agent whose company Score represents Arsenal's Alexandre Lacazette, among others.
“Things are on hold for these players who are in a precarious position. They are the ones who are the most in danger,” he said.
More free agents might find themselves on the market, but the biggest Champions League stars are unlikely to be impacted.
Market change
Elsewhere, the dynamics of the market may change. “In some ways, people will be eyeing up bargains,” said an agent with in-depth knowledge of the British market. “A distressed club becomes a motivated seller, so there will be a fire sale of a distressed club selling its assets.”
However, the reality is that nothing is happening right now.
“Nobody wants to get involved in that sort of thing now. Our primary job at the moment is to make sure all our staff are looked after,” says Jonathan Barnett, whose clients include Gareth Bale.
NAMPA/AFP
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