English clubs suffering effect of weak pound

Martin Caparrotta
By Martin Caparrotta

The pound’s dramatic slide against the euro means that English football clubs are having to spend up to 30% more than they would have this summer if they are to bring in talent from the continent.

Where a player that was valued at €10 million may once have cost English clubs £7 million, the same player would now cost the equivalent of £10 million. The basic reason for this is that the value of the pound has been weakening against the euro for several months, culminating in the current situation where £1 is approximately equal to €1.

Arsenal’s pursuit of Russian hotshot Andrei Arshavin is a perfect example of how English clubs have been hit by the uncertain economic climate. Arshavin’s club, Zenit St Petersburg, value their player at €20 million, so while £15 million would have landed the player in August, he would now cost Arsenal a more significant £20 million — a staggering 30% increase.

And although English clubs are feeling the crunch of the exchange rate on their January transfer plans, managers of European teams will be rubbing their hands together as they benefit from the situation, making Premier League players a much more attractive option than they were six months ago.

However, the so-called ‘big four’ of English football have benefited from the weak pound. UEFA Champions League revenue is paid to the clubs in Swiss francs, meaning that the English participants will receive up to 25% more than last season when the funds are exchanged into sterling.

And such is the current stature of the Premier League, the bigger clubs should still be able to land the players they are after, as money is not short in the league. But it may make clubs more wary of future purchases from Europe.

It is likely that the pound will strengthen against the euro over the coming months, however clubs that were looking to splash the cash on players from Europe during the short January transfer window may be forced to hold out until the summer.

MORE: Arsenal, Chelsea, Man United and Liverpool stars among players out of contract in 2018

MORE: Seven reasons why Chelsea must keep Cesc Fabregas

MORE: Do you know the top Muslim footballers in the Premier League?

MORE: Back to The Sport Review homepage

MORE: Man United latest news

MORE: Arsenal latest news

MORE: Chelsea latest news

MORE: Liverpool latest news

The Sport Review
Top 50 most stylish footballers in the world in 2017: Arsenal, Man United, Chelsea, Liverpool stars feature
The Sport Review
Top 25 Muslim football players in Premier League: Arsenal, Liverpool, Man United and Chelsea stars feature
The Sport Review
Arsenal WAGs 2017: Meet Granit Xhaka, Shkodran Mustafi and Alex Oxlade-Chamberlain’s wives and girlfriends
The Sport Review
Roberto Firmino: 25 photos of the Liverpool forward’s stunning wife
The Sport Review
Top 40 Muslim footballers: Arsenal, Chelsea, Liverpool and Man United stars feature
The Sport Review
Arsenal, Chelsea, Man United and Liverpool stars among 16 players out of contract in 2018
The Sport Review
French Open 2017: Aljaz Bedene scores first British win, but looming Nadal opens No10 campaign
The Sport Review
Photo: Alexis Sanchez sends message to Arsenal fans after FA Cup final win
The Sport Review
French Open 2017: Dimitrov, Robredo, Thiem carry one-handed banner into Round 2 but Evans goes out