Premier League football clubs have saved £85m on the £483m spent on players from European clubs due to the pound’s rise against the euro, according to corporate FX broker Foenix Partners.That’s not to say that English clubs haven’t lost out when selling players to European clubs. Take Manchester United, for example, when it bought Angel Di Maria from Real Madrid in August 2014 at a rate of €1.2558 per pound. Foenix explained that when the club “flogged Di Maria to Paris St Germain in August 2015 for £44.3m, it lost £15m on the player’s value”, and a further £7.5m due to the exchange rate. Richard de Meo, managing director at Foenix Partners, said: “Most football clubs don’t pay the total transfer fee in one go and will typically pay over a schedule of instalments lasting two to three years in addition to any performance related fees. Given the fluctuating currency markets it has become even more important than ever for football clubs to carefully manage FX exposure.” The latter advice may prove useful given the impact on exchange rates from the market crash in China. Moneycorp recently put together a study, which presents a strong case for teams to be paying more attention to exchange rates whilst striking deals with foreign teams. The company claimed that Premier League clubs could have saved £23.4m had its owners completed transfers on the dates with the best exchange rate. That’s more than Liverpool paid for Luis Suarez in 2011 – a five-and-a-half year deal worth about £22.7m.
Manchester’s club signings for Memphis Depay and Kevin De Bruyne were both bought at times where the pound was weaker against the euro. Memphis Depay’s transfer fee from PSV Eindhoven to Manchester United was £25,000,000 when the exchange rate was 1.371. The club therefore lost out on £1,141,021 of potential savings, Moneycorp claimed. Similarly, Kevin De Bruyne’s transfer from Wolfsburg to Manchester City failed to capitalise on advantageous exchange rates. When the £55,000,000 fee was agreed, the exchange rate was 1.373 – which is by far lower than the optimum rate for the period, Moneycory said. City therefore missed out on £2,456,755 worth of potential savings. Such was the poor timing of Manchester United’s moves in the transfer market that had it timed its transfer dealings better, it would have saved enough to have subsidised every single season ticket at Old Trafford by £118. Read more about football:
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