The News Herald (Willoughby, OH)
Executive: 100 or more clubs could fold
Soccer faces losing many clubs to bankruptcy because of the coronavirus pandemic.
A slowdown in the multibillion dollar transfer market, and possible defaults on payments from player deals made before the shutdown, were cited as concerns in a debate hosted by a FIFAbacked research center on May 13.
“I think the biggest threat to club football in the coming six months is going to be the 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
Bologna’s Federico Santander warms up during a training session May 5in Bologna, Italy.
facing smaller clubs are not understood.
Clubs across Europe have been denied commercial revenue with no games in most countries for at least two months, and only fanfree games in empty stadiums likely for months
ahead.
Back in March, European Club Association (ECA) leader Andrea Agnelli predicted clubs faced “an existential threat.” The Juventus president described the coronavirus outbreak as “the biggest challenge our game and industry has ever faced.”
Now, many clubs are looking for richer leagues to complete their seasons so that money paid by broadcasters for fulfilling contracts can revive the transfer market.
“This is where there is a lot of uncertainty,” Gudasic said, adding some clubs in Croatia in terms of budgeting had become “actually addicted” to transfer revenue from their former players.
His comments came in an online panel discussion hosted by the International Centre for Sports Studies (CIES) at the University of Neuchatel in Switzerland.
Clubs could go bankrupt waiting for installments due from player deals made in the past two years, university academic Raffaele Poli cautioned.