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How Will Brexit Impact the Transfer Market Moving Forward?

The pandemic has a significant effect on the transfer market and where English clubs are concerned, Brexit threatens to have its own impact on clubs dealings

Back in January, with Premier League clubs still struggling to come to terms with the economic impact of Covid-19, the purse strings were tightened and the rumour mill came to a grinding halt in what proved to be the most uneventful midseason transfer window on record.

Indeed, throughout the entire English top flight, there was a total of just 26 signings — down almost 50% from the previous year — with clubs sticking with the squads they have rather than forking out on new players during these dark and turbulent times.

With such a large chunk of revenue lost due to a lack of ticket sales, it was no surprise to see clubs adopt a more frugal approach as they try and weather this seemingly never-ending financial storm.

But in addition to the economic uncertainty caused by the pandemic, is there another reason why clubs failed to recruit new players in? Something to do with that dreaded B-word, perhaps!

Brexit Transfer Chaos

While we were all busy wondering what impact Brexit would have on the economy, few of us stopped to consider the effect leaving the EU would have on our transfer market. Now, the realities of our withdrawal and what that means for football transfers are starting to hit home; moving forward, the ramifications could be severe.

When MPs and representatives were in parliament haggling over a withdrawal deal, much of the focus centred around the trade of goods between Britain and the rest of Europe. But, as the negotiating rumbled on for what seemed like an eternity, one area that was never really given a second thought — at least by most — was the trade of professional footballers.

But, following our split from the union on 1 January, it now looks as though Brexit is set to complicate matters for managers looking to recruit from the continent — some of whom apparently had no idea they were about to face such issues.

Take our former manager, Sam Allardyce, for example. Big Sam — now in charge of struggling West Brom — has been consistently vocal about his dislike for the European Union. When asked how he'd voted in 2016's referendum, Allardyce was emphatic in his response.

“I am out,” Allardyce told the Sun newspaper a couple of years back. “My feeling is that the European Union isn't doing the United Kingdom any favours.”

But, after getting his wish and seeing the country formally leave the trading bloc in January, Allardyce got more than he bargained for with the new rules put in place torpedoing much of his transfer business.

“I have found three players already who were capable of coming here and were not allowed,” he said last month. “It's a shame. Due to new regulations in terms of the permit, they were unable to come to this country, whereas previously they would have done. I have to look at that and think ‘can he qualify?'”

Whoever would've thought cutting ties with the EU — the trading bloc of which you've been a member of for almost 50 years, which was set up purely to make dealing with the rest of the continent easier — would lead to more red tape and make the recruitment of European players less straight-forward? Not Allardyce, by the looks of it!

Changes to the Rules

While Allardyce didn't go into specifics about why the transfers in question failed to materialise, the new rules stipulate that every player coming to the UK from Europe must now have a work permit.

The work permits are granted on a points-based system, and a panel takes into consideration a range of factors including club appearances, international caps (senior or youth) and the quality of the selling club. If the player meets the criteria, he'll be granted a GBE (Government Body Endorsement) and the transfer will be complete. If not, the deal's off and the manager will have to look elsewhere.

It's likely Allardyce's targets didn't fit the standard now required, which meant the former England boss missed out on the recruits he badly needs to help his struggling West Brom side avoid relegation.

Ban on U-18 internationals

There's also the possibility one or more of the players Allardyce was targeting was an Under-18 international, which is now banned altogether under new rules agreed by the Premier League, Football League, FA and UK government. The new rules were put in place to aid the development of homegrown talent and prevent British players being frozen out at academy level, and this could be the one shining light that emerges from Brexit.

With less competition from abroad, youngsters will now get more of a look-in, which governing bodies hope will gradually result in the cultivation of better British players, eventually translating to more success at international level.

For years, England's failures have been put down to the Premier League's overreliance on foreign imports; so, with more now being done to produce world class talent in our academies, could it be just a matter of time before we finally end the near-60-year-long wait and lift some silverware at long last? We certainly hope so!

Latino style

Another potential upside is the possibility of an influx of South Americans to English football. James and Allan — two players who have enjoyed successful debut seasons at Goodison Park — are both prime examples of the quality South American players can bring to the Premier League, and those who like to see the silky technical ability that's practically coded into the DNA of many of these players from Latin America might be in for a treat, with managers forced to shop elsewhere now that purchasing players from Europe has become problematic.

When the Brexit debate was doing the rounds, few anticipated the impact it would have on the transfer of football players to and from Europe. But now the withdrawal has been finalised, it's becoming clear things are changing for good and, while there may be some good to come from the decision, for managers of British clubs looking to raid the European transfer market to sign new recruits, things are about to get much more complex.

Just ask Big Sam.

This post was written by Darryl Rigby, Content Executive at the Immigration Advice Service

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