Suspension period could give way to ugly financial situations for clubs, warns Jonas Baer-Hoffman
FIFPro general secretary Jonas Baer-Hoffman has admitted that football's suspension period could lead to serious financial situations which could turn very ugly. Major European leagues and UEFA competitions have all been shutdown until the early April, with a confirmed restart still in doubt.
A serious and rigorous meeting schedule has been taken up by UEFA, its members, FIFA and other authorities to resolve the crisis surrounding the various domestic leagues and UEFA’s club competitions. It has seen then shift Euro 2020 to the summer of 2021, with UEFA's main intention to try and finish the league seasons in time for next season to start, which is their best case scenario.
The verdict to postpone EURO 2020 was welcomed by the 55 members association of UEFA, as the European top-flights get a chance to complete their halted leagues. The concern regarding the financial setbacks is real though, for at the centre of all the superpowers in football, lies money. COVID-19 has become a global health hazard but FIFPro general secretary Jonas Baer-Hoffman has provided another perspective to the setbacks that will follow the pandemic.
"For the first time in decades, we're facing a real, consistent economic crisis in the industry. We must look at the socio-economic impact of coronavirus.Not just the players but other people employed through professional football - our industry employs hundreds of thousands. There is the potential for it to turn ugly very quickly," said Hoffman reported the BBC.
“We know how football clubs budgets are managed. They're always right at the line or above it in terms of liquidity. If we don't respond quickly in terms of stabilising the cash flow we could see mass redundancies and mass lay-offs of players and other staff within weeks.”
Concerns from different European club authorities were raised regarding the contract situations of many players, who will run out in May. If the seasons are stalled for longer, till June and July, which they will now, to manage the wages and new contracts will be a troublesome equation. However, Hoffman went on to admit that there is an even bigger issue in the Nordic countries where UEFA are taking measures to see how player employment is affected.
“In Ireland or the Nordic countries we have the first measure being taken that could affect the employment of players. Once those jobs are gone and those clubs are bankrupt, it is difficult for them to recover once coronavirus is over," he added.