The stock market uncertainty for Europe's giants

Published on: 01 April 2020

Real Madrid's financial safety net is allowing them to confront the Coronavirus crisis under a lot less uncertainty than some of their European counterparts.

Barcelona and Atletico Madrid are filing for ERTEs, which means employees, including players, will take a significant pay cut to save the club money.

Elsewhere in Europe, there are other heavyweight clubs concerned about the financial implications of COVID-19.

In Italy, Juventus have seen their shares fall by 21.16 per cent in the last month - a drop that has caused the club to act.

Maurizio Sarri's squad have agreed to cut their wages completely for four months, meaning they won't earn anything until July, saving the club an estimated 90 million euros.

Juventus' lowest share value stood at 0.54 on March 12, but, because of these wage cuts, it's risen back up to 0.77 now.

For some context, that figure was double the size in September 2018, just after they signed Cristiano Ronaldo from Real Madrid.

Roma are another Serie A club seriously affected, with Dan Friedkin ready to buy the club before Coronavirus came along.

The value of the club's shares spiked before the imminent sale, but, since that has fallen through, they've plunged just as dramatically.

In the Premier League, Manchester United have seen their share prices fall by 11.06 percent in the last month, but that's not as much as the 20.21 percent drop they saw at the start of 2020.

Borussia Dortmund have been hit hard in Germany, seeing their share prices plummet by 36.76 percent in the last month.

Their initiative to help other German clubs financially along with the other Champions League clubs in the Bundesliga has seen their value rise again, but they are talking about a "catastrophic" situation if the season isn't completed.

There is a certain culture of club togetherness in Germany, one which saw Bayern Munich save Dortmund from going out of business in 2003 with a loan of 2m euros which was interest free for nine months.

"Without great rivals, there is no business," Bayern said.

Now, we'll have to wait to see if the giants of European football can come together again and make it through this crisis.

Source: m.allfootballapp.com

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