Madrid Seek Euro-Pound Insurance
Real Madrid are set to sign a deal with a insurance company to guarantee a secure rate on the constantly fluctuating Euro to Pound exchange, allowing them to more easily deal with any British clubs they may want to do business with.
The Pound had been pretty much steadily falling in value against the Euro since mid-February until a sudden rise in value in late-April and early-May, which has since begun to steady back out in the Euro’s favour.
Current exchange rates are around the same value as they were in mid-March, but with the inconsistent nature of the exchange, many European teams who intend to enter into transfer talks with British teams are contacting insurance companies in order to get a fixed rate.
This now includes Real Madrid, who have been constantly linked in the Madrid press with an €80million move for Manchester United winger Cristiano Ronaldo, despite the fact that United have insisted that the Portuguese star is going nowhere.
Taking out such a policy would mean that Madrid would not suffer from any sudden fluctuations in the exchange rate, which with a deal of such financial magnitude is obviously a very real concern for Ramon Calderon and his cohorts. With the insurance company footing the bill, they will be able to more carefully choose their moment.
Such policies are not new in Spanish football, as a number of teams took out similar schemes back when Spain was still using the Pesetas. That currency suffered from similarly variable exchange rates with the US dollar, which was the currency of choice for transfer deals at the time.
Nick Dorrington
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