This is how the COVID-19 crisis will affect clubs, transfers, television …

first_imgA: It makes sense that televisions do not pay. In Spain approximately 75% of the season has been disputed and LaLiga has collected between 85 and 90% of the total television rights. That is, it may be that not only do they not collect the remaining percentage, but they must return part of the money entered so far if the remaining games are not played. For this reason, this season must be ended in any way, surely behind closed doors and always with the appropriate sanitary conditions. The clubs generate more from television rights than from tickets.Q: Which clubs will suffer the most if the competition is not ended?A: Barça, for example, will suffer a lot. It has long been at the financial limit. It does not generate benefits despite the large volume of income it has. The last years have ended up saving the sales of players like Neymar.Q: And which clubs will suffer less?A: Eibar is a club with a very high profitability that is doing things very well in the economic sphere and that will allow it to pass this situation in a more comfortable way.Q: Espanyol made a large investment in the winter market (40 million euros) with the intention of saving the category. If LaLiga ended the competition without disputing the remaining games and the three teams that now occupy the last places (Mallorca, Leganés and Espanyol) descended, could the Blue and Whites’ club be in a very difficult financial situation?A: Espanyol was already in a very difficult situation before the coronavirus crisis. And descending is always a problem. Although LaLiga as an employer has a non-refundable compensation fund to help the clubs that descend to Segunda. Between the three, 50 million euros are distributed. Of these, Espanyol would correspond to approximately 25 if it went down together with Mallorca and Leganés.Q: Why isn’t it divided by three?A: Because the parameters set by LaLiga include aspects such as the seasons that a team has in First Division.Q: And how many millions of television rights would Espanyol stop entering if it descends?A: This season he has entered 30 million euros and in Second he would enter 6. But these 25 from the compensation fund would serve to balance the figures. What would be worrying for Espanyol would be not returning to Primera in one season. Then he would no longer have any help from LaLiga.Q: LaLiga, between direct and indirect jobs, employs almost 200,000 people. Are many of these jobs now in jeopardy?A: Indirect job calculations are imaginative and complicated to calculate. I suppose that, for example, they must count the employees of the bars that emit the parties, but calculating the beers that will be stopped serving is quite complex. In any case, for many of these 200,000 people what is happening will be a serious problem. The bars that have concessions within the stadiums have been billing zero for weeks. And they have some employees to pay their payroll and I don’t know if they continue to pay a royalty to the club in question or not. On the other hand, there are discontinuous jobs, such as those in charge of being on the stadium turnstiles. These people usually have other jobs and the involvement may be less. The economic consequences that the coronavirus crisis will have for the world of football are expected to be enormous.. There are multiple affectations that are already beginning to happen and, for the moment, uncertainty reigns.Will the clubs collect all the television rights if they don’t end up playing the remaining games? Will transfer prices decrease significantly? How many direct and indirect football-related jobs will be lost? These are some of the questions that are in the air and that the experts are already beginning to answer. One of them is David Valero, economist and soccer researcher, who in this interview with EFE sets out his point of view regarding many of the issues that are on the table of the king of sports right now.Question: Because of the coronavirus crisis, are member-owned clubs at risk?Answer: We must bear in mind that clubs that are not limited companies, such as Barça, Real Madrid, Athletic Bilbao and Osasuna in LaLiga, are an anomaly in the world of soccer. For this reason, they will receive pressure from the market to change their status. In this sense, the situation reminds me when savings banks, another anomaly at the time, were pressured to become banks before the 2008 economic crisis. The crisis was used to end all of them in one way or another. .Q: Will these clubs have a harder time recovering from losses than joint stock companies?A: A club that is a corporation can carry out a capital increase like any company, but the clubs that are owned by the members have to survive on the money that they generate. During this time at least they will receive ideological pressure from people who do not like this anomalous model.Q: There has been a lot of talk about a sharp price drop in the next transfer markets. Is it so? Is Neymar now worth much less than before the pandemic?A: The price of any asset is what someone is willing to pay for it. It is not a fixed thing. In the case of soccer players, the braking will be noticeable. If potential Neymar buyers have less money than before, the price changes. I find it hard to believe that the transactions will continue as is after the break. Another option is that the transfer prices do not fall and operations are not carried out directly because for the buying clubs it is no longer a priority to sign and the sellers do not want to sell below the price that they consider optimal. On the other hand, there is the issue of player write-downs.Q: What are the big signings that are not yet amortized?A: For example, at Barça Coutinho and Dembélé they are not yet amortized and selling them below the market price before the pandemic would mean losses in the club’s economic balance.Q: One of the most important sources of income for clubs is television rights. In France, BeIN Sports and Canal + France did not send the LFP the payment scheduled for April and reported that they will not make any until the football resumes. Do they have the right to do so?last_img

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