Pandemic batters market for Brazilian footballer transfers
SAO PAULO: Brazil exports more footballers than any other country, but the coronavirus pandemic has caused a plunge in international transfers, hitting the finances of clubs that depend on lucrative deals for their young talent.
The number of Brazilian footballers transferred to foreign clubs fell 62 per cent during the European summer transfer window this year, according to an AFP count based on data from the website Transfermarkt.
From June 1 to Sept 8 last year, 194 players at Brazilian clubs left to play abroad, either on loan or transferred, according to the site. This year, the number was just 74.
“The transfer market has slowed. Clubs are trying not to spend as much because everyone’s financial situation is complicated,” said ESPN commentator Gustavo Hofman.
Brazil leads the world with 2,742 footballers playing abroad, ahead of Argentina (2,330) and France (1,740), according to a May report by the International Centre for Sports Studies, in Switzerland.
In the country of Pele and Neymar, transfers typically generate around one-fourth of clubs’ income, second only to TV rights as a revenue source.
But the number of transfers is not the only thing that has fallen. Amid the financial uncertainty unleashed by Covid-19, the amount of money involved in the deals has also dropped.
Last year, the three top international transfers brought €77 million (RM378 million) to Brazilian clubs.
That included a €45-million deal between Real Madrid and Brazilian club Santos for teenage winger Rodrygo.
This year, the three top transfers have brought less than €62 million to Brazilian clubs. In the biggest, Portuguese club Benfica paid €28 million to Gremio for forward and national team standout Everton.
The Lisbon club also paid €18 million to bring attacking midfielder Pedrinho from Corinthians.
The slump comes at the worst possible time for Brazilian clubs, which were already struggling with heavy debt.
Now, they are also reeling from the economic fallout of Covid-19 in the country that has the second-highest death toll worldwide, after the United States.
The pandemic led authorities in Brazil to cancel all football matches for nearly four months, shattering clubs’ sponsorship, TV and ticket revenues.
The economic crisis has made international transfers all the more attractive, since it has caused the Brazilian real to plunge against the dollar and euro.
That means the take-home value has increased for Brazilian clubs, at a time when they are struggling to make ends meet with other revenue streams.
But “European clubs are tightening their belts,” as they, too, struggle with the economic uncertainties of the pandemic, said agent Edgardo Aguilar.
In normal times, Brazil is also a major importer of football talent. But this year, clubs have dramatically scaled back transfer deals for players from countries such as Uruguay, Peru and Colombia.