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Liga MX Clubs Making Plans To Deal With Surge Of U.S. Dollar

Liga MX clubs "are not exempt from the consequences" that the U.S. dollar surge has on their pockets, according to Iván Cañada of ESPN.com. Necaxa General Dir Luis Torres said that to start, "[league] expenses are in dollars and revenues are in pesos." And, "accordingly, many clubs are making plans" to endure a '17 that has been described as "complicated" in economic terms. In the past four years, the dollar has increased its value by almost 10 pesos. This has "made things difficult for football clubs, who are searching for different ways to deal with the devaluation." To give "just one example:" if a player was bought for $8M in '13, the equivalent in Mexican currency was 102M pesos. Now, the same cost in dollars would amount to 176M pesos. This fact has "direct consequences on the economic health of Liga MX teams." Among "their problems are player contracts, and particularly those of foreign footballers, who are paid in dollars." To find a solution to this problem, "which is not a new one for Mexican football," the clubs include a maximum value for the dollar in the players' contracts in order to have a "predictable point of reference." The clubs' money expenses, which are commonly in U.S. currency, "are inverse to their revenues," because (with the exception of the TV contracts) most money received from ticket sales and food and beverages is in pesos. Torres: "Some, not all, of the club expenses are in [USD], and we are trying to minimize the risk by fixing the exchange rate or by some other mechanisms that we can use as an institution to mitigate that devaluation, which is an important one." Besides players' salaries, another expense rated in dollars is that of charter flights, "frequent in the regular activity of the teams" (ESPN.com, 1/17).

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