Tuesday, November 1, 2011

The impact of the financial crisis on European football

First, we need to take a look to the situation of the Premier League clubs (name of the English championship). Many English clubs are registered on the stock exchange and many investors are part of the financial sector. Logically the English football economy is suffering from the crisis. Other European countries are subjected to this crisis in England but they also directly suffer from the crisis. For instance, the French clubs have more difficulties selling their best players (that’s how they survive) to English or Spanish clubs.
Amateur clubs have other difficulties. They’re often sponsored by little companies, which are the victims of the crisis. But we can notice that big clubs like Barcelona or Real Madrid in Spain still spend millions to buy and to pay the best players in the world. One of the main explanations is that there is no economic regulation for Spanish clubs. They can have big debts and the King Juan Carlos sometimes pay off their debt.
One other fact is that very rich families buy out clubs, which become automatically richer than the others. Since this summer, the Paris-Saint Germain Football Club belongs to the royal Qatari family.
To conclude, we can say that the financial crisis creates a bigger gap between rich and poor clubs.



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