England’s finest are able to match European clubs’ asking prices and buy-out clauses far more easily, as they can with prospective new players who make their wage demands in euros
As if a £5 billion TV deal was not enough, the ongoing Greek financial crisis has stacked the cards firmly in favour of the Premier League as Europe’s biggest clubs are left looking on in envy at their cash-rich English rivals.
It may seem insignificant to even the thriftiest holidaymaker, but a nine-pence depreciation in the value of euro to the pound (€1 was worth £0.80 in July 2014, now it is worth £0.71) has left clubs as grand as Bayern Munich and Real Madrid short-changed.
The wild fluctuations in currency exchange rates, which stands to benefit Brits abroad this summer, also has a profound effect on the football transfer market. The situation in Greece, which of course has far more serious implications for its citizens and many more outside its borders, is currently tipping the balance even further towards football clubs from England’s all-powerful Premier League.
Every year, each manager is given a budget by his board and this will be quoted in local currency. So Jose Mourinho at Chelsea will be given an amount in pound sterling and Rafael Benitez will be given an amount in euros at Real Madrid. It seems obvious but this year, more than any other, the consequences are far-reaching.
Changes in exchange rate will impact upon a club’s buying power, especially if the club is buying from a country which uses a different currency.
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