Clubs are asking players to give up their wages. For Slovaks, it could be a breaking point

How will the pandemic affect salaries? “Let go of your illusions. Say goodbye to the idea that this season’s competitions will be completed,” said virologist Jonas Schmidt-Chanasit from the renowned Bernhard Nocht Institute in Hamburg. “Even if the coronavirus doesn’t hit us with full force, it doesn’t mean football can go on. Resuming competitions would significantly worsen the situation,” warns the German virologist. Most European football leagues are suspended until May or indefinitely. League officials stubbornly believe that the seasons will be completed. An early end to the season would be very costly. According to a study by consulting firm KPMG, the five major leagues (England, Spain, Germany, Italy, France) could face combined losses of 3.4 to 3.95 billion euros.

TV rights are a threat
The English Premier League would be hit hardest, losing between 1.15 and 1.25 billion euros by failing to complete the remaining 92 matches. The biggest portion of that—700 to 800 million euros—comes from broadcasting rights. According to German media, the Bundesliga could lose up to 700 million euros if the rest of the season is canceled. The Sport1 website calculated that over eight rounds, clubs could collectively lose 330 million euros in TV rights, 240 million from sponsors, and 130 million from ticket sales. Player wages make up 60 to 70 percent of a club’s budget. Club owners are facing massive losses and are trying to figure out how to minimize them.

Ronaldo could lose nine million
“Player salaries cannot be untouchable in this situation,” said Gabriele Gravina, president of the Italian Football Federation. According to Corriere dello Sport, there are two proposals on the table. The first suggests players forgo their March paychecks. The second, based on the season not being completed, would mean giving up a proportional part of the annual salary—about 20 to 30 percent. This would not apply to players earning minimum wage. Cristiano Ronaldo, the league’s highest-paid player, earns approximately 31 million euros net at Juventus. Under the worst-case scenario, the 35-year-old Portuguese star would have to forfeit nine million euros.

Will clubs sell their assets?
“Players should be supportive and reduce their salaries,” said Spanish agent Josep Maria Minguella. “If a player insists on receiving their full salary, they have the right to it. But they’ll get it late and make a bad impression,” he continued. “If he goes to court, he’ll win. But where will clubs get the money from? Will they sell their assets?” Players and officials from several German clubs have already agreed to salary cuts. According to the SID agency, Bayern Munich players gave up 20 percent of their earnings. Last season, the German champions spent 336 million euros on wages from a total turnover of 750 million. According to Marca, players from FC Barcelona and Real Madrid are also willing to reduce their annual salaries by around 30 percent. They are expected to forgo pay from March through June.

Club owner pleads with players
Not everyone agrees with the proposals. According to El Mundo, Barcelona suggested players’ salaries be cut by 70 percent during quarantine. Barcelona was set to spend 507 million euros on wages this season, plus 135 million in transfer amortization. According to the respected site Sporting Intelligence, Barcelona pays each of its players an average annual salary of over 10 million euros. The owner of Scottish club Heart of Midlothian, Ann Budge, asked players and staff to agree to a 50 percent pay cut. “If I weren’t convinced that this is the only option, I wouldn’t be asking you for it,” she wrote in a letter quoted by DPA. Swiss club FC Sion announced wage reductions to 12,000 euros per month. When players disagreed, the club terminated their contracts immediately. Several Norwegian clubs released all professionals, except for players who are ineligible for unemployment benefits or are injured and officially unfit to work.

In Slovakia, wages can't be cut just like that
Could something similar happen to players in the Slovak league? “It’s not possible for a club to get rid of a player overnight,” explained sports lawyer and agent Jozef Tokos. “The competition in Slovakia is suspended. That’s not a legal reason for contracts to be unilaterally terminated or for salaries to be reduced. That can only happen with voluntary agreement from both sides,” added the advisor to the Union of Football Professionals, which represents players. In Slovakia, the first and second leagues are considered professional. Some cuts may happen at clubs like Slovan, where wages are above standard by local measures. But that’s not the case with most other clubs.

They’re losing out on bonuses
Potential wage reductions could create existential problems for some footballers in Slovakia. “Footballers here earn very little. Half of our professional players earn less than a thousand euros a month. Another 30 percent earn between one and two thousand,” said the president of the Union of Football Professionals, Jan Mucha. In the current situation, clubs are paying players as if it were the offseason. What does that mean? Players are entitled only to their base salary. During the active season, players can significantly increase their earnings through bonuses—for wins, draws, and individual achievements like appearances, goals, assists, or clean sheets. In some cases, the variable component can be higher than the base salary. Problems may also arise if the league continues into July, as many players’ contracts expire on June 30. (...)