Juventus has agreed with football players on radical salary cuts due to economic problems amid the coronavirus epidemic. This step will help Turin save at least € 90 million.
The prosperity of football clubs and leagues suffers tremendous losses while players are quarantined and unable to do their job. In this regard, many teams, from the lower divisions to the grandees, have to take emergency measures to minimize economic losses. However, these same measures will inevitably hit the finances of football players, whose salary makes up most of the clubs ’budgets.
And the most acute problem of the replay of the season, on which the normal functioning of teams and earnings depends, is in Italy, which has become the epicenter of the spread of coronavirus in Europe. Thus, according to El Mundo Deportivo, the pandemic does not allow local clubs to continue to consistently pay salaries to their players and employees.
Under the circumstances, it is estimated that salaries may be reduced by 20-30%.
The first to introduce radical cuts was announced by the current champion of Serie A Juventus. A statement published on the Turinians official website said the club had reached an agreement with players and coaches to reduce salaries due to the suspension of the championship. It is about compensation for the remainder of the season, which is almost complete.
“The agreement provides for a reduction in payments equal to the monthly payments for March, April, May and June 2020. In the coming weeks, an agreement with the players and the coach will be drawn up as required by the rules, ”the press release said.
The specific numbers that the Bianconeri personnel will lose are not mentioned. Nevertheless, the club specified that the reductions in total will allow the club to maintain about € 90 million. “The economic and financial consequences of the agreement are positive – saving about € 90 million in the fiscal year 2019/2020,” said Juve.
Recall that the epidemic of coronavirus infection COVID-19 stopped the season in Italy on March 9 for at least the next month, but the championship will not be resumed until the situation stabilizes. Given the magnitude of the spread of the disease, this may not happen until the summer. According to official statistics on March 29, the number of infections on the Apennines has already reached 92 thousand people, and the number of patients who have died has exceeded 10 thousand. Thus, the pandemic in Italy does not think to decline, which calls into question the need to replay the season.
The severity of the coronavirus was also seen in a personal example in Juventus, where three footballers fell ill.
Regarding the possibility of resuming the championship, the Union of European Football Associations (UEFA) obliged all national championships to finish the season no later than June 30. In Italy, planning to start playing again in early May, but now it is becoming less and less real. Some authoritative sources write: if this happens, then not earlier than July. In this regard, the question arises of further payments to the players.
Juventus will solve this problem as it arrives.
“In the case of postponement of matches of this season, the club will negotiate with the players and the coach on a conditional increase in compensation in accordance with the actual resumption and completion of the tournament,” the club said in a statement.
The Italian league can only suffer losses from the loss of broadcasters, as predicted by the KPMG consulting company, in the region of € 450 million. However, the leadership of the championship plans to give clubs the opportunity to forcefully reduce salaries for players. Based on the logic, footballers from lower divisions will suffer the least losses, and Serie A athletes will suffer the most. Only the main star of Juventus and the championship Cristiano Ronaldo can reportedly lose about € 10 million of the € 30 million stipulated by the contract.
One way or another, but the Portuguese himself was sympathetic to this problem. Initially, Juve discussed several solutions to the situation, including the complete refusal of the players from the fee for months of inactivity. And Ronaldo, as Spanish publications write, agreed to this. His losses in this case would be about 12% of annual earnings. It is possible that, taking into account the € 90 million saved by the club, the most serious measures were taken.