Value of the transfer market has fallen by around about 28 per cent, admits Kieran Maguire
Football finance expert Kieran Maguire has confirmed that the value of the transfer market has fallen by 28% because of the coronavirus pandemic. The prolonged impromptu break caused by the COVID-19 pandemic has seen the value of the transfer market plummet and put a few clubs in financial jeopardy.
Uruguay’s FA has already furloughed almost all their staff including head coach Oscar Tabarez, Norwich City and Newcastle United have done the same to their non-playing staff. Tottenham and Bournemouth have been forced into pay cuts with Daniel Levy and Eddie Howe taking large cuts to their salaries. Furthermore, it has also seen players at Barcelona, Borussia Dortmund and Bayern Munich amongst other sides take pay cuts to pay non-playing staff their full wages.
However, football finance expert Kieran Maguire went onto admit that the transfer market has taken a serious hit and values have dropped immensely which will affect transfers and fees that clubs will get for their players. He further added that that will cause problems for clubs further down the league pyramids with financial fair play penalties also coming into play alongside other issues.
"I think we are very much in uncharted waters. And there could be a lot of legal ramifications if the seasons goes beyond June 30 which of course, there has to be a very high probability. There was a report published in Switzerland last week by one of the analyst organisations and they felt the value of the transfer market had fallen by around about 28 per cent. I think that will not be problematic for clubs who are in a relatively strong position, but as we drop down the leagues Birmingham have had financial issues,” Maguire told Sky Sports.
“Historically, we're aware of their Financial Fair Play penalty last season and the fact that they have been effectively put into a period of being monitored by the EFL, then that they will be between the devil and the deep blue sea. They will need money to survive. They do have owners who are based in Asia but we don't know how their businesses are coping at present. So, therefore, there would be an opportunity potentially for an acquiring club to acquire a player of the nature of Jude Bellingham at a discounted price."
The likes of Bellingham and various other Championship starlets have been linked with a move to the Premier League over the last few months but price issues have changed that. Things have reportedly changed now and Maguire went onto add that the top tier clubs will have an upper hand in the summer window as they could potential get bargain deals.
"Player transfers is one area where the clubs are looking to spend large sums. Clubs will very quickly become aware as to which clubs are in the most degrees of financial distress. And if you're in a financial distress situation, you end up having to accept fire-sale prices for some of your biggest assets because what you're trying to do ultimately is to survive.
"So those clubs who are in a stronger financial position, they will be able to - I wouldn't say act like vultures - but certainly pick up bargains from the transfer market by identifying those clubs who do have financial problems,” he added.
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