English Football - Impact of Recession on Player Wages.

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For the past decade English football has seen the wages of professional footballers rise every year. The global financial crisis will have a knock on effect on many industries all over the world. Football may be a sport but the premiership in particular is big business and many of the chairmen and directors will have lost money in some form because of the downturn. There has been much speculation on the impact of recession on player wages. Most football clubs will have a level of debt. In simple terms this means they owe the bank money. In the current financial climate, it will probably be harder for clubs to raise funds for building new stadiums or redeveloping an existing stadium. Many clubs will have to be prudent with regards to all aspects of spending. Contract negotiations with players and their agents may be one area where budgets are trimmed. The wages of professional football players have been out of control for several years. Because of the constant rise in player salaries, many experts within the game have openly questioned where it will all end. In this respect, the economic downturn may be a blessing in disguise for the vast majority of football clubs. Players will now have to be more realistic when it comes to negotiating future wages and bonuses. Nowadays players demand a new contract if they have less than 2 years on the existing one. Or they try to engineer a transfer to another club with the help of agents. This sort of behaviour will surely be less common as clubs cannot afford to be held to ransom by ridiculous financial demands from players. All football clubs face an uncertain financial future in the next 12 months. Not many insiders expect player wages to fall across the board although it is fair to say that they will not continue to rise like they have done in the last 5 years. In the past, players have been guilty of playing clubs off against each other. This was done in an attempt to get the most lucrative contract possible. When faced with these scenarios today only the wealthiest clubs will tolerate such conduct English football clubs are not immune to what goes on in the economy. There is no doubt that the recession will have an impact on player wages. Critics of the lucrative salaries paid out to modern day footballers will suggest this is a positive thing and is the silver lining in this particular cloud.


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