Soccer executive warns of 100 clubs going bankrupt

Soccer faces losing many clubs to bankruptcy because of coronavirus pandemic. A slowdown in multi-billion dollar transfer market, and possible defaults on payments from player deals made before shutdown, were cited as concerns in a debate hosted by a FIFA-backed research center on Wednesday.

“I think biggest threat to club football in coming six months is going to be survival of smaller clubs,” Lokomotiva Zagreb director Dennis Gudasic said.

Gudasic warned of a “drastic situation whereby we have maybe 100, or 200 clubs go bankrupt in September or October” if challenges facing smaller clubs are t understood.

Clubs across Europe have been denied commercial revenue with games in most countries for at least two months, and only fan-free games in empty stadiums likely for months ahead.

Back in March, European Club Association (ECA) leader Andrea Agnelli predicted clubs faced “an existential threat.” Juventus president described coronavirus outbreak as “ biggest challenge our game and industry has ever faced.”

w, many clubs are looking for richer leagues to complete ir seasons so that money paid by broadcasters for fulfilling contracts can revive transfer market.

“This is where re is a lot of uncertainty,” Gudasic said, adding some clubs in Croatia in terms of budgeting had become “actually addicted” to transfer revenue from ir former players.

His comments came in an

Clubs could go bankrupt waiting for installments due from player deals made in past two years, university academic Raffaele Poli cautioned,

“I’m t sure all clubs will be able to pay,” Poli, a leading analyst of transfer values worldwide, said.

Clubs in eastern European countries such as Croatia could still make deals in a slower transfer market, Manchester United scout Piotr Sadowski said.

Players re would be available at less cost than from clubs in Portugal or France, he said.

An extended transfer window would also help revive market, Man United scout said, suggesting “ufficial talks” had taken place about idea.

FIFA, sport's world governing body, has agreed to be flexible with typical July-August trading period in Europe as re is clarity when current season will end and 2020-21 campaign will begin.

’This would be a good idea to make like a six months transfer window from summer to winter 2021,” Sadowski said. “It would give all those clubs a chance to better plan transfers and ir budgets.”

Asked about trends in a likely deflated transfer market, industry experts pointed to idea of clubs accepting less cash up front for players, with more money backloaded in higher sell-on clauses and bonuses conditional on performances. More loan deals also seem likely.

Though even English clubs face hardship if broadcast deals are t paid in full, huge wealth gap in Europe was highlighted.

Every Premier League club will still be paid tens of millions of dollars this season, while Croatian clubs get 150,000 euros ($162,000) annually from domestic TV revenue, Gudasic said.

Gudasic suggested clubs with a global brand would still thrive: “Let’s face it, ECA is t representing smaller clubs.”

“w we are waiting to see what is going to happen in Europe,” Lokomotiva director said. “It’s very difficult (to see) when or if situation will come back to rmal.”

(Im Credit: AP)