Brexit is no cause for concern for football
Like Mike, LFC, Dubai, I too am depressed this morning following last night’s events. However on the majority of the points he raises, I personally don’t see too much cause for concern for football.
1. I am not a currency expert but I expect that the huge drop in the pound will ultimately recover. Notwithstanding this, where companies negotiating contracts in different currencies are unsure of a specific date of doing business (i.e. in football, an unknown transfer date) it is not uncommon to use an agreed average exchange rate over a period of time to alleviate the possibility of large fluctuations (in either direction) on the day.
2. The last time that the pound fell sharply against the Euro I personally have seen players contracts negotiated in Euros at the player’s request. That is to say that irrespective of the exchange rate the payer will receive the agreed amount of Euros (or any other currency) and the club is therefore liable to any fluctuations in the exchange rates. This does of course mean that if the pound ultimately strengthens against the Euro, the player may actually be worse off.
3. I believe that if the Leave campaign get their way this country will operate a points based system to gain entry (similar to Australia). The country decides what professions it wants to let in and then it is down to you to prove that you can do the job and also that you (and your family) won’t be a burden on the economy. I cannot see a situation where a player with an offer of employment and the ability to pay 45% PAYE tax (less any agreed offshore image rights contract) would be turned away.
4. The same goes for managers as players.
5. I will leave the quota issue for someone who knows more about football (rather than finance) than I do.
One area that may be a cause for concern is for travelling fans in both directions. With less freedom of movement there is a potential disincentive to travel which could impact on ticket sales in the UK and also increase the cost for UK supporters going abroad. Discuss.
Gwarrior LCFC (that’s the Imps rather than the current premier league champions)
Oh, yes it is
After the result of Brexit what are some of the ramifications for football?
In the immediate short term, the plummet of sterling means foreign imports will get much more expensive. That £50m player is now a £70m player so forget about your club splurging on big name players this summer.
But once the exit is complete, there’ll no longer be free movement of players from other European countries. Bye bye Bosman. All those South Americans with European passports won’t be eligible. That promising young Spanish or French player won’t be eligible. Work permit rules will have to apply to all players so forget about signing players who haven’t broken into their national teams. David De Gea, Thiery Henry, Fabregas etc? Nope. They can’t come.
The same rules about free movement will also impact on managers, coaches, backrooom staff etc.
In theory this should all mean that clubs will have to invest heavily in (British-only) youth and staff training. There will be a few years before this will impact so there’s time to get that up to standard but don’t think that this won’t have a massive impact on football in years to come.
Like Mike, LFC, Dubai, I too am depressed this morning following last night’s events. However on the majority of the points he raises, I personally don’t see too much cause for concern for football.
1. I am not a currency expert but I expect that the huge drop in the pound will ultimately recover. Notwithstanding this, where companies negotiating contracts in different currencies are unsure of a specific date of doing business (i.e. in football, an unknown transfer date) it is not uncommon to use an agreed average exchange rate over a period of time to alleviate the possibility of large fluctuations (in either direction) on the day.
2. The last time that the pound fell sharply against the Euro I personally have seen players contracts negotiated in Euros at the player’s request. That is to say that irrespective of the exchange rate the payer will receive the agreed amount of Euros (or any other currency) and the club is therefore liable to any fluctuations in the exchange rates. This does of course mean that if the pound ultimately strengthens against the Euro, the player may actually be worse off.
3. I believe that if the Leave campaign get their way this country will operate a points based system to gain entry (similar to Australia). The country decides what professions it wants to let in and then it is down to you to prove that you can do the job and also that you (and your family) won’t be a burden on the economy. I cannot see a situation where a player with an offer of employment and the ability to pay 45% PAYE tax (less any agreed offshore image rights contract) would be turned away.
4. The same goes for managers as players.
5. I will leave the quota issue for someone who knows more about football (rather than finance) than I do.
One area that may be a cause for concern is for travelling fans in both directions. With less freedom of movement there is a potential disincentive to travel which could impact on ticket sales in the UK and also increase the cost for UK supporters going abroad. Discuss.
Gwarrior LCFC (that’s the Imps rather than the current premier league champions)
Oh, yes it is
After the result of Brexit what are some of the ramifications for football?
In the immediate short term, the plummet of sterling means foreign imports will get much more expensive. That £50m player is now a £70m player so forget about your club splurging on big name players this summer.
But once the exit is complete, there’ll no longer be free movement of players from other European countries. Bye bye Bosman. All those South Americans with European passports won’t be eligible. That promising young Spanish or French player won’t be eligible. Work permit rules will have to apply to all players so forget about signing players who haven’t broken into their national teams. David De Gea, Thiery Henry, Fabregas etc? Nope. They can’t come.
The same rules about free movement will also impact on managers, coaches, backrooom staff etc.
In theory this should all mean that clubs will have to invest heavily in (British-only) youth and staff training. There will be a few years before this will impact so there’s time to get that up to standard but don’t think that this won’t have a massive impact on football in years to come.
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