How the Covid-19 crisis will shatter the transfer market
How coronavirus will destroy the transfer market: KPMG reveals player values could be slashed by almost £9BILLION with Liverpool, Real Madrid and Barcelona among worst the hit squads
- Player values across Europe could be slashed by £8.7bn due to coronavirus
- The value of players in Europe’s top leagues could drop by over a quarter
- Value of Premier League leaders Liverpool could drop by £209million
- Barcelona and Real Madrid could decrease by £286m and £258m respectively
- Here’s how to help people impacted by Covid-19
Player values could be slashed by £8.7billion if the current season cannot be completed due to the coronavirus pandemic, a new report claims.
The worrying projection comes with leagues across Europe grappling with how to restart their campaigns, with France’s Ligue 1 having already been forced to cancel.
If Europe’s other top leagues fall by the wayside it would see the value of its players drop by over a quarter.
Liverpool stand to be one of the worst affected clubs in Europe by the coronavirus crisis
It would lead to a dramatic 26.5 per cent drop in the aggregate values of all the 4,183 players of its top 10 leading leagues – just since February.
Should the leagues recommence, the drop off in value will be less severe but still significant, the report by KPMG claims.
According to their estimate, in the case of a cancellation of the football season the estimated revenue losses in the big five leagues could exceed £3.5m.
However, completing the season this summer behind closed doors would lead to aggregate revenue losses of around one-third to one-fifth of the total loss estimated for a full cancellation, as seen in France.
The player values would decrease by almost £6billion if, as is looking likely in England, Germany, Italy and Spain, play is resumed in the coming months.
That would still represent a sizable decrease in value at 17.7 per cent.
If the seasons cannot pick up where they left then the big five leagues in Europe will bear the brunt of the loss in value at an enormous £7.4billion.
The value of Real Madrid’s players could drop by £258m from £1bn to £742m
Barcelona, currently leading the table in Spain, would drop from a value of £991m to £705m
Premier League leaders Liverpool and Clasico rivals Barcelona and Real Madrid stand to be the clubs most affected by the crisis.
Jurgen Klopp’s European Champions would drop in value by £209m from £1bn just three months ago to £791m if the season is cancelled.
Real Madrid, who have won three of the last five Champions League titles, would decrease by £258m from £1bn to £742m.
Barca, currently leading the table in Spain, would drop from a value of £991m to £705m, losing a staggering £286m in their squad’s value.
Manchester City are projected to retain the most valuable squad in Europe, dropping by 22 per cent if the season is cancelled to £840m.
PSG and Chelsea also look set to be hard hit. The Parisian giants could see their squad drop in value by 25.4 per cent to £608m, while the Europa League holders could decrease even further from £823m to £600m – a drop of 27 per cent.
Barcelona’s dramatic drop in value of 28.9 per cent is due in part to their relatively ageing squad and Lionel Messi’s contract situation.
The Ballon d’Or holder’s contract only runs until June 2021 and his individual value is set to drop by 27.5 per cent.
Damien Comolli thinks Europe’s biggest clubs will be able to ‘sweep the market’ this summer
Former Liverpool and Tottenham transfer chief Damien Comolli told Sky Sports News on Wednesday that Europe’s big clubs could use the crisis to ‘sweep the transfer market.
He said: ‘I’ve had discussions with some clubs around Europe and even the medium-sized clubs are thinking about it.
‘Clubs have a good chance to sign good young players. Maybe some up to £100m but getting 5,6,7 players who could be the core of their team for years to come.
‘Clubs who are prepared for this from a scouting point of view, a planning point of view will be in a good position to do this. I spoke to an agent in Belgium last week and he said his clients who were worth £30m in January are now worth £10m.
‘You could sweep the market by getting some good young players at an incredibly decent price. In the first week of the lockdown I was trying to find out what was happening in South America. The market hadn’t changed there yet because the virus hadn’t arrived.
‘I got a call last week and what I said is happening. Clubs are panicking and you can buy the best talents at a very discounted price. France, clubs are in big trouble. Monaco have got 71 players on contracts; they have some outstanding young centre backs. Belgium, as well. Standard Liege are reportedly about to go bankrupt. Those are the markets I would look at.’
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