You may have heard that the Euro is having heart palpitations recently. Problems that have been simmering in the Eurozone periphery for two years are coming to a head, Greece is boiling over and Italy, Spain and Portugal are next in line if European leaders cannot turn down the heat. Unfortunately there is no resolution in sight as the 17 Euro-member countries, most markedly Germany and France, are unable to decide on a rescue plan for the monetary union. In the best case bondholders will take losses on national debts and massive amounts of cash will be shoveled onto European banks; in the worst case there will be absolute financial chaos.
So what does this mean for soccer in Europe? Continue reading “The Euro Crisis and your Soccer Club”
This was interesting enough to merit its own post.
The Spanish banking group Bankia has apparently posted Ronaldo’s registration (as well as Kaka’s) as collateral to secure loans from the European Central Bank:
“Could we see a situation in which the ECB seizes one of the players?“ wonders the Munich daily. “In theory, it is possible. Bankia would first have to become insolvent. Thereafter, Real would have to default on its loans, which are secured by advertising and television revenues.
Süddeutsche Zeitung (Original in German)
Given the recent troubles in the Eurozone caused by Greek instability and hints of contagion in other Euro members like Italy, it is unsurprising that a policy of measured lending maybe taking a backseat to a policy of “Take the money now!”.
If collateralizing player registrations becomes a trend maybe we will see the ECB field a Winning XI from the PIIGS?