Swedish striker Zlatan Ibrahimovic "was the first high-profile footballer to feel the bite from Brexit," according to Murad Ahmed of the FINANCIAL TIMES. When he signed for ManU last week, "his sterling-denominated pay packet" was worth roughly 10% less against the dollar.
Ibrahimovic "did not balk at his deal," reportedly worth £220,000 ($286,600) a week. But other clubs "are taking advice on how Brexit will change how they sign players and the sharp fall in the pound will land clubs with higher bills for foreign players this summer." Daniel Geey, a sports lawyer at Sheridans, said, "If there is a euro amount to a player’s buyout clause, that amount has become more expensive and has potentially scuppered deals." The summer transfer window "opened in June." Clubs "are expected to spend lavishly." The biggest clubs "are hedged against currency, earning euros from playing in European competition and dollars from international sponsorship deals." But smaller clubs "could feel stretched by the drop in the pound." A senior exec at one of the Premier League’s biggest clubs said, "Right now, currency is the big issue. The bigger story is about player acquisition, transfers and player development. Everything will depend on the political settlement." Brexit "could also change Britain’s status as one of the power brokers of world football" (FT, 7/5).
ROCKY TRANSITION: In N.Y., Belson & Trecker reported the full consequences "will take years to sort out" and sports teams "are starting to prepare for a potentially rocky transition." In the worst case, British football, rugby and cricket teams "would have difficulty acquiring athletes from the other 27 European Union countries, particularly younger players that many teams recruit to their academies and youth teams, if the free passage of citizens between European Union nations were curtailed." This "could provide an opening for British athletes who have not been able to win roster spots, but it could also dilute the international appeal of England’s Premier League." British sports management firm Beswicks Managing Dir Gary Mellor said, "The Premier League is the biggest and most successful soccer league in the world, and the reason for that is the entertainment value. It’s probably more competitive than other leagues, but at the same time, you have a fairly decent standard of players. But if it moves back to being primarily British in player makeup, it will lose some of its appeal to a worldwide audience." Interest "from wealthy foreigners wanting to buy British teams could also sag if the British economy slows, or if the quality of play suffers." Rob Tilliss, who founded Inner Circle Sports, a sports advisory firm, said, "There would be discount for going into the EPL, but then, theoretically, profits and revenues are devalued, too. But the product is so good now that they’ll figure out how to make it work" (N.Y. TIMES, 7/5).
