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Premier League footballers are moving their wages overseas to avoid the Brexit plunge in the pound

Premier League footballers are moving their wages overseas to avoid the Brexit plunge in the pound

Premier League footballers are moving their wages offshore to shield the money from a slide in the pound caused by Brexit.

Foreign players who have moved to Britain from abroad are sending their wages home or buying assets overseas to ensure the cash keeps its value.

The process - known in the City as hedging - effectively insures money against any further fall in the value of the pound.

Sterling plunged in the immediate aftermath of the Brexit vote in 2016 and has made no recovery since. It is 14 per cent lower than before the referendum. 

Experts have suggested a no deal Brexit in March could see a fresh fall in the pound - possibly making it worth less than the euro.

Jon Goss, head of partnerships at Argentex told the Financial Times: 'In the Premier League, foreign nationals from 65 countries account for 70 per cent of players, the highest of any league in the world.'

He said such a diverse league meant hedging was often used as 'a defensive mechanism', adding that players 'repatriate wages paid in sterling to different countries as well as purchase assets and goods overseas'. 

Argentex counts Manchester City, the current Premier League champions, among its clients.  

The firm revealed a 43 per cent surge in the amount of money being hedged since June 2016.

Last year, Manchester United, the world's wealthiest club in terms of revenues, revealed new overseas signings has asked to be paid in euros rather than pounds.

The club turned down the bid, insisting it did not have millions of euros on hand. 

At the time, Cliff Baty, Manchester United's chief financial officer, said: 'A lot of European players will want to be paid in euros, understandably to a degree.

'But we are a sterling company . . . [and] managing that is quite tricky.'  

Source: http://www.dailymail.co.uk/

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