The football transfer market could crash after a financial expert warned of a “domino effect” from clubs’ major debts.
Coronavirus has seen the Premier League and EFL suspended for the foreseeable future as social distancing measures are practiced.
This has seen funds coming into clubs slashed, leading to furloughing of non-playing staff in an effort to balance the books.
Pressure has now grown on these clubs as their debts from massive transfer fees continue to grow.
And Maguire, who is a lecturer at the University of Liverpool, has suggested this could spark a chain reaction in the Premier League.
Speaking to the Daily Mail, the football finance expert said: “The issue would be if a club defaults on payment. That could cause a domino effect.
MANCHESTER, ENGLAND – MAY 06: The Premier League Trophy on display prior to the Premier League match between Manchester City and Huddersfield Town at Etihad Stadium on May 6, 2018 in Manchester, England. (Photo by Michael Regan/Getty Images)
“You can’t view transactions in isolation. It would just take one medium-sized club to default on a payment which is due.”
Maguire shared statistics on his Twitter account of the debt owed by top-flight, which makes for staggering reading.
Manchester United sit top of this table, with £169.3m owed, followed by rivals Manchester City [£83.7m] and Tottenham [£83.4m].
There are exceptions in Burnley [£5.3m] and Newcastle, who are actually £15.6m up – but the majority of clubs owe more than £15m.
Football finance expert Kieran Maguire shared statistics of debt owed by clubs
One of the big money-makers for Premier League clubs is broadcast money – but games are reportedly set to be shown for free if played behind closed doors.
It comes as FIFA confirmed a new transfer window plan earlier this month.
A statement from the governing body read: “With regard to transfer…