FIFA is working on a major plan to help football organisations all around the world, due to the Covid-19 pandemic impact, according to Reuters. The football’s world governing body has §2.7 billion to support leagues and clubs.
Reuters called this financial project as “Marshall Plan for Football”, referring to the economic and financial plan to rebuild Europe in the aftermath of the World’s War II.
This week, football’s world governing body has created a work group to address the impact of Covid-19 crisis, considering cash injections to help struggling organisations. A Fifa spokesperson told Reuters there are “serious financial problems on account of the coronavirus outbreak.”
They said: “This threatens to disrupt and impair the ability of Fifa’s member associations and other football organisations such as leagues and clubs to develop, finance and run football activities at all levels of the game, including professional, non-professional, youth and grassroots”.
FIFA is currently putting together a “Football Marshall Plan” which will see the governing body deploy some of its $2.7 billion reserve funds to help mitigate the financial impact of the coronavirus crisis..https://t.co/8nGWjY1wcC
— AS English (@English_AS) March 31, 2020
They added that Fifa’s strong financial position meant it was in a position to help those in need. The organisation is reported to have cash reserves of $2.7bn.
Most football competitions around the world are temporarily suspended due to the Covid-19 crisis. UEFA had already postponed the Euro 2020 to the next year, and European competitions and national leagues are suspended and thereis no outlook for resuming the matches.
With matches suspended, media rights partners stopped payments to football rights-holders because the content due under their contracts is not being delivered. Clubs are now trying to cut expenses by reducing wage costs with football players.
The Premier League clubs have asked its players to take a 30% cut to their annual pay, while they decided not to resume the matches in May, as coronavirus pandemic is causing a cash crunch in the national game.
Spain’s Barcelona agreed to cuts of 70%, Germany’s Bayern Munich 20%, while at Juventus in Italy, players have waived their salaries for four months.