Transfer trade is muted

As noted in Deloitte’s annual review of football finance, the trade in top footballers is muted. Dan Jones, head of the consultancy’s sports business group, said: “buyers appear to be few and far between as a number of major clubs are in a position where sales are required before purchases can be made.”

The two Spanish super clubs are suffering more than most. Real Madrid and FC Barcelona are eschewing the big money acquisitions they were accustomed to making before the pandemic arrived. 

It should be no surprise that neither club has given up on the failed European Super League, a breakaway competition that would have provided “welcome bonuses” worth €200m-€300m per club.

Both were involved in capital-intensive stadium redevelopments when the pandemic hit. Barca also made a series of big-money signings and allowed borrowings to pile up, although this week the club was quick to note that credit rating agency Fitch is positive on its debt profile.

All major clubs were losers in the pandemic. Teams across the big five leagues — England, Germany, Spain, Italy and France made revenues of €15.1bn in the 2019-20 season, down 11 per cent year-on-year.

Revenues in the Premier League, the world’s most valuable domestic football contest, fell by 12 per cent to €5.1bn. But that is still roughly €2bn more than any other European League, including Spain’s La Liga. This wealth gap should mean England’s clubs will continue to capture the sport’s best players in the years to come.