What happens when you start reading BBC football transfer gossips amidst your daily doses of Bloombergs, Moneycontrols, Economic Times’ and Wall Street Journals? An economic dribbling I’d say.

Euro has strengthened considerably with respect to GBP in last one year. Currently GBP/Euro ratio is hovering around 1.26 while last year same time it was around 1.47. Now the importance of same time is linked to the fact that it is the time of season when soccer clubs managers start nagging their directors/owners for fatter cheque books. Transfer season is embarking upon them and all the European big shots have already started working on their scout reports.

“How does it matter?” I hear you ask-Well, it does. Especially to English clubs owing to the fact that other European clubs have their transfer budget in Euros. For example consider transfer of almost discarded Brazilian prodigy Ronaldinho. He is valued around 40 million Euros by the Catalan club. Assuming that his valuation has not changed in last one year, mere inflation has changed his price from 27.2 million GBP (40/1.47) to 31.7 million GBP (10/1.26). This extra 4.5 million GBP can cost English clubs dearly while their European rivals still have to pay same 40 million Euros.

Applying reverse engineering to the argument makes players in Premiership an easy target for European giants. Regressing further, England team did manage to not qualify for Euro 2008 which basically means no divine heroics to be seen by top flight English players, who mostly play in Premiership, to boost up their prices in international transfer market. With lot of Premiership clubs looking for new managers this season, it’s going to repercuss their budget even more. One way English clubs can salvage from this plight of inflation is browse and hunt within shore. But that will further devalue Premiership players.

According to latest Forbes reports, there are 6 English clubs in top 20 richest clubs of the world but equation might wobble big time post season. Will the financial blasphemy of English clubs be confronted by the Reals, Barcas, Milans and Bayerns? How much will they make use of this loot? Will it give all the more reason for young South Americans to join Portuguese and Spanish clubs and not English? Are English clubs going to raise record breaking funds this summer or is it going to be mutual transfer agreements amongst them?

It’s going to be an interesting transfer season this time.

Labels: Soccer, Sports, Wandering Thoughts