Sporteconomy Editor Marcel Vulpis: “Suspending Financial Fair Play Is A Good Idea, It’s A Horrible Season Economically”

Italian journalist and editor of Sporteconomy Marcel Vulpis discussed the risk of collapse in the football world in an interview with Italian media outlet TuttoMercatoWeb earlier today.

“For the minor leagues there will be a bad awakening after the coronavirus emergency is over. Deloitte has estimated a negative economic impact of €200 million even in the event of a restart of the league. It would go up to €720 million in case of cancellation of the league.”

He then discussed why there is a risk of collapse.

“The risk of collapse is strong because the costs are still running for football clubs while revenues have stopped. There is a need to restart but always within the protection of public health. There will be 75-80% of clubs that will go into the red so I expect big sales of valuable players from many clubs that will try to earn cash to try and end the season with a less heavy negative.”

Vulpis highlighted what could have been done differently to limit the negative impact of an emergency like the ongoing Coronavirus situation.

“It was a situation that no one could have predicted. If there hadn’t been the strong debt exposure of our system and if there had been more liquidity the clubs would probably have been able to solve this unique and unrepeatable situation better.”

The sports economy expert then spoke about the rumours that UEFA may suspend Financial Fair Play in order to help the clubs.

“I think it’s correct, it’s a horrible season from an economic point of view for all European countries. It is right that the system is saved and protected and that clubs are given the opportunity to restart with a little more strength because it is clear that if all the stakes of the PSF were applied many clubs would risk bankruptcy and, in many cases, be excluded from the European cups. UEFA’s position with respect to this initiative is correct.”

Finally, Vulpis discussed the problems Italian football are facing thanks to the Coronavirus emergency.

“Looking at the Italian system we are faced with a situation that is already indebted and the coronavirus emergency has brought into the system the so-called black swan, i.e. the very negative economic element that is impacting on the whole system.”

Serie A, like other top leagues around Europe, has been postponed until May at the earliest due to the Coronavirus emergency. The virus has caused the continent to go into a lockdown in order to try and limit the spread. Euro 2020 was postponed to next summer to allow the leagues to finish on time.