Football teams in Argentina face the risk of a sharp depreciation of the country's currency, which would force them to disburse larger sums of money to fulfill their players' contracts. Hernán Lacunza, vice president of Racing Club, has highlighted the importance of being aware of exchange rate risk in this context.
Lacunza, former Minister of Economy in the government of Mauricio Macri, was surprised to notice that most local teams did not adequately analyze their ability to withstand devaluation events. However, some prominent analysts in the Argentine financial sector have expressed concerns about excessive currency appreciation and have received criticism for it.
Due to existing restrictions, teams cannot pay players in dollars abroad. This has led Argentine clubs to have greater purchasing power to make signings in the international market, attracting renowned players from various nationalities.
The president of Racing Club pointed out that the stability of the peso has increased the competitiveness of clubs, allowing them to make previously unthinkable signings. Despite these improvements, limitations still exist in the purchasing power of local teams, making it difficult for them to compete on equal terms with foreign clubs.
The strong Argentine peso has encouraged the return of prominent footballers to the country, generating a renaissance in Argentine football that worries investors and analysts. This resurgence could be showing signs of the risks associated with the current economic plan implemented.
Despite improvements, some high-level Argentine players like Lionel Messi remain financially out of reach for local clubs. The stability of the peso, despite criticism from various sectors, has allowed a resurgence in Argentine football, with multimillion-dollar signings that strengthen local teams and provide them with greater competitiveness internationally.
