Premier League stars tackle weak pound
Big names want huge pay rises
THE Premier League’s star imports are demanding huge pay rises as clubs’ TV revenues rocket, Chinese teams entice them with mega wages – and the pound slumps ahead of Brexit.
Some players have secured bumper increases before tomorrow’s transfer window deadline.
Liverpool’s Brazilian playmaker Philippe Coutinho has signed a fiveyear contract worth between £150 000 (R2.5-million) and £200 000 (R3.3-million) per week.
But Arsenal have yet to meet the demands of Mesut Ozil and Alexis Sanchez.
Reports suggest World Cup winner Ozil and Sanchez, twice winner of the Copa America, each want about £250 000 (R4.2-million) per week as they also factor in the cost of converting pounds into their native currencies.
This is significantly higher than their current weekly wages of about £135 000 (R2.2-million) and above Arsenal’s improved offer said to be in the region of £200 000.
“While fans tend to associate player costs with transfer fees, it’s important to note that transfer fees only account for about one-third of overall player costs,” said Jake Cohen, a sports lawyer at Mills & Reeve.
“The majority of player costs go to wages,” he said in an interview, adding that some players from abroad do sign deals to be paid in currencies other than the pound.
To help offset the impact of currency fluctuations, Premier League clubs have sponsorship and other deals with foreign exchange trading groups that offer them preferential rates.
“Any company engaging in multinational transactions should be considering forex options, and football clubs are particularly exposed,” Cohen said.
Since Britain last year voted to exit the European Union, sterling has plunged by about 18% against the dollar and about 14% versus the euro.
“The weaker pound is rapidly chipping away at players’ already staggering wages and agents are clearly seeking to capitalise on this new opportunity to draw more out of the clubs,” Oanda trading group senior market analyst Craig Erlam said.
“They will also be aware of the fact that [Premier League] clubs can afford to meet the higher terms due to the new TV deals,” Erlam said.
“I don’t think it’s a coincidence that some footballers who came to England to chase the television money are now using China to try and broker a better deal,” he said.
China has shot into the world’s top five buyers of international football talent, a Fifa report said on Friday, while British media frequently links Premier League players with potential moves to the country.
Cohen meanwhile pointed out that the falling pound would do little to help bridge a widening gap between TV incomes earned by England’s top 20 clubs and the broadcasting revenues made by Europe’s other top leagues, including in Spain.
The Premier League’s clubs are currently enjoying the proceeds of a £5.14-billion (R86.9-billion) UK television rights deal for three years up to 2019 – up a staggering 70% on the previous agreement.
Including overseas rights, the present Premier League broadcasting deal is worth £8.3-billion (R140-billion). — AFP