The French League studies a common loan to help the clubs

first_imgThat decision can be a serious blow to the clubs, which in France receive 36% of their income in the first division from television broadcasting rights. Another threat comes from the fact that the transfer market may be severely affected by the slowdown. French clubs are traditionally vendors and they obtained a significant part of their income from this section. In the 2018-2019 season there were some 635 million euros in transfer surpluses, essential to balance their accounts, and according to the French financial control body, the clubs still need about 200 million euros until the end of the season to not end it in negative. Most of the clubs have resorted to partial unemployment mechanisms for their workforce or to salary reductions for their stars. But, even with these solutions, the coffers of the clubs must support up to 84% of the players’ net salary, not covered by the partial employment regulation files. The LFP is in negotiations with the soccer union to reduce wages 50% globally. The crisis is affecting most of the clubs, even the big ones.The main threatened is Olympique de Marseille, who already had red numbers before the arrival of the coronavirus and was in the spotlight of UEFA for that reason. Monaco, another of the greats, has put all its workers on technical unemployment and negotiates with the staff to reduce their wages. The club can benefit from the support of the Principality’s authorities and studies whether it can also receive help from the French State, since it plays in that league. The Paris Saint-Germain (PSG), for its part, despite having the largest budget, is also the one with the most losses linked to the pandemic. It is estimated that you can stop entering about 215 million euros. The French Professional Football League (LFP) is considering creating a community credit fund to help clubs overcome financial difficulties they may have due to the slowdown in competitions due to the COVID-19 pandemic. According to sources of the organization, it would be a credit of between 200 and 250 million euros that would be requested with the guarantee of future television income, both the current ones, from the BeIN Sports channel, and those of the following seasons, bought by the Spanish Mediapro. In this way, the aim is to allow entities to meet expenses during these months, when they have seen their income decrease due to the lack of ticket sales and all the benefits associated with the parties’ dispute. To this is added that Canal Plus has decided to freeze the payment of 110 million euros that it had to make on April 5, as it could not broadcast the games.last_img read more

Read More