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LONDON, United Kingdom, Jan 29 – The Premier League’s star imports are demanding huge pay rises as clubs’ TV revenues rocket, Chinese teams entice them with mega wages — as well as the pound slumps ahead of Brexit.
Some players have secured bumper increases before Tuesday’s transfer window deadline.
Liverpool’s Brazilian playmaker Philippe Coutinho has signed a several-year contract worth between £150,000 ($189,000, 176,000 euros) as well as £0,000 per week.
however Arsenal have yet to meet the demands of Mesut Ozil as well as Alexis Sanchez.
Reports suggest World Cup winner Ozil as well as Sanchez, twice winner of the Copa America, each want around £250,000 per week as they also factor inside the cost of converting pounds into their native currencies.
This particular is usually significantly higher than their current weekly wages of about £135,000 as well as above Arsenal’s improved upon offer said to be inside the region of £0,000.
“While fans tend to associate player costs with transfer fees, This particular’s important to note in which transfer fees only account for around one-third of overall player costs,” said Jake Cohen, a sports lawyer at Mills & Reeve.
“The majority of player costs go to wages,” he said in an interview with AFP, adding in which some players via abroad do in fact sign deals to be paid in currencies some other than the pound.
To help offset the impact of currency fluctuations, Premier League clubs have sponsorship as well as some other deals with foreign exchange trading groups in which offer them preferential rates.
“Any company engaging in multinational transactions should be considering forex options, as well as football clubs are particularly exposed,” said Cohen.
“Clubs often enter into contracts with international companies in foreign currencies, such as sponsorship deals as well as service contracts,” he added.
Since Britain last year voted to exit the European Union, sterling has plunged by around 18 percent against the dollar as well as some 14 percent versus the euro.
“The weaker pound is usually rapidly chipping away at players’ already staggering wages as well as… agents are clearly seeking to capitalise on This particular completely new opportunity to draw more out of the clubs,” said Craig Erlam, senior market analyst at Oanda trading group.
“They will also be very aware of the fact in which (Premier League) clubs can afford to meet the higher terms due to the completely new TV deals,” Erlam told AFP.
“I don’t think This particular’s a coincidence in which some footballers who clearly came to England to chase the television money are today using China to try as well as broker a better deal,” he added.
China has shot into the globe’s top several buyers of international football talent, a FIFA report said Friday, while British media is usually frequently linking Premier League players with potential moves to the country.
– Power of TV –
Cohen meanwhile pointed out in which the falling pound could do little to help bridge a widening gap between TV incomes earned by England’s top 20 clubs as well as the broadcasting revenues made by Europe’s some other top leagues, including in Spain.
“The falling pound may aid La Liga in principle, however This particular will take a lot more than a 10 or 15 percent improvement inside the value of the euro compared to the pound, as well as which may or may not be permanent, to come close to matching, let alone supplanting the Premier League, at least with regards to revenue,” he said.
Despite Manchester United’s relative failure on the pitch last season, the club has topped Deloitte’s Football Money League in terms of overall revenue for once in more than a decade.
United — who were last on top inside the 2003/04 campaign — earned record total revenue of 689 million euros ($737 million) — as well as dislodged Champions League holders Real Madrid who have ruled the roost for 11 years.
The Premier League’s clubs are currently enjoying the proceeds of a £5.14-billion UK television rights deal for three years up to 2019 — up a staggering 70 percent on the previous agreement.
Including overseas rights, the present Premier League broadcasting deal is usually worth £8.3 billion.
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Premier League stars tackle weak pound