Reliance on high transfer fees risks clubs' survival, UEFA finance chief says
Premier League clubs' reliance on the continued buoyancy of the transfer market is creating a "fragile model" which could put their long-term survival at risk, UEFA's finance chief has warned. Television deals worth almost £4billion ($5.
UEFA's finance chief has cautioned that Premier League clubs' heavy reliance on high transfer fees may jeopardize their long-term survival. According to the European Club Talent and Competition Landscape report, English clubs spent £4 billion annually on transfers, which accounted for 56% of the 20 clubs' annual revenues. This figure represented a 44% increase compared to the previous year, making it the largest transfer market in terms of value, generating over €2.2 billion in transfer fees.
Andrea Traverso, UEFA's financial sustainability and research director, emphasized the risk of clubs depending on high transfer fees for revenue. He noted that rising transfer values would put additional strain on club financial results through higher amortization charges. The report suggests a growing financial disparity between English clubs and their competitors, creating a "two-speed" system.
In the event of a slowdown in buyer demand, a drop in transfer values, or tightened credit conditions, this financial imbalance could expose underlying profitability and sustainability issues.
Written by urgent.news from Yahoo Sports's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
