Is Transfer Market Affected By Covid-19?
Covid-19 has changed a lot of things and the way they used to earlier. One of the most famous and common sectors of the world that have been changed is the transfer market in the football leagues. The football arena and the transfer market are greatly connected as the players are transferred as per the requirement.
Having said that, it was no surprise that over the years people noticed a change in the transfer market. However, significant differences were observed after the pandemic. Due to the pandemic, the matches were cancelled at short notice because many people and players were suffering from covid-19. a previous report also stated that the demand for transfer news remained high, according to the figures from the BBC sport website.
Without football match, there was no ticket sales, advertising relationships were threatened, and team could had to be paid broadcasters million dollars due to the Premier League season uncompleted .Despite this, reports preserved that Borussia Dortmund winger Jadon Sancho was worth £100 million and Tottenham attacker Harry Kane was worth £200 million.
Let’s have a brief look at how COVID has changed everything in the transfer market. To know more, keep reading!
According to the CIES Football Observatory, corona virus caused a 28 percent decline in transfer values across Europe’s top five divisions, resulting in a loss of more than £7 billion.
Others had informed BBC Sport that there was a minimum of a 20% decline in England since teams was not have the same amount of money to invest.
According to calculations compiled by financial expert Premier League teams had owe £1.6 billion for players they had already purchased. Most people agreed that power had belonged to the selling club, but after that it had belongs to the buyer. The knock-on effect of that was the market was become more cautious.
Fans undoubtedly wanted the player, but sometimes they said no to the selling club because it was unhealthy. There was various examples where chief executives and managers had been publicly chastised for holding firms.
The Clubs did not want to lose their players as before They wanted to keep what they already had , one of the interested thing was that, they placed an even higher value on their top players because they didn’t want to lose them.
PR Didn’t find it useful to spend more
One of the other things to consider was that whether a team would pay in million on a player, which was selected by many. so how did you feel about it?
When people were losing their jobs, were on leave, and the daily death toll was in the hundreds. Premier League club’s daily spending appeared out of step with a country in crisis.
Five premier league clubs put their non-playing employees on leave while playing their high-earning players. The former Manchester United and England defender Garry Neville had called on clubs to lay off employees or reduce player’s wages to avoid a transfer embargo.
According to a recurring hypothesis, transfer indemnities would have been negotiated at lower levels than in the past due to the lack of COVID-related earnings. This hypothesis can be proven thanks to CIES football observatory research group that created transfer value algorithm.
There was a variable for the seasons in which the transfer took place among the various factors included in this procedure.
Big -5 league clubs spent around 6% more in the previous transfer window than they did in the summer of 2010 to sign footballers with similar characteristics. From this perspective, the pandemic was had only served to put a slight brake on the skyrocketing inflation between 2015 and 2019. According to this, the average was 15 percent per year.
The fact that prices were stable despite the COVID issue highlights the need for conditional payments in player transfers. This method always allowed buyer teams to reduce the risk of transfers by paying extra money only if the player was satisfied or the results obtained were positive.
The COVID pandemic has resulted in a major decline in transfer market investments. Compared to summer 2019, the drop in the five top European championships during the last transfer window was 43 percent, with the minor dip in England (-10 percent) and the largest in Spain (-75 percent).
The COVID crisis had a significant impact on the probability of players being subjected to a paid transfer. However, if the transfer occurs, the hypothesis is invalidated that the price would have been negotiated to a lower level than before the epidemic.
The football industry is one of the most talked-about things, and in the past few years, the craze of people to know insights has significantly increased. Thus, this write-up was an attempt to highlight the few changes in the football industry after Covid-19. We hope this article fulfills your needs.