When you do a quick Google search of ‘Premier League Brexit’, you get a large number of posts discussing the loss of great players, quite a few images of Arsene Wenger looking distraught (with good reason), and a whole host of information on the projected impact that Brexit will have on the Premier League going forward.
While it’s going to be quite a rollercoaster ride for the Premier League in the next few months – without being able to say exactly what the final impact will be – what we need to remember is that in the wake of the referendum, all business in the UK will need to prepare for a number of eventualities.
In this blog, we look at some of the effects that may be felt, and how the same impact that the Premier League will deal with may be felt in your own business. We also give the solution for your business going forward, with practical advice.
The projected impact of Brexit on the Premier League, and what it means for your business.
1. Increased risk and volatility
The Premier League:
Players, clubs, broadcasters and all others that work in the Premier League arena will face an uncertain future until a new agreement is finalised with the EU. How will the new structure work? Until this is clarified, all the involved industries will be in limbo.
Your business:
If your business relies on free movement, trade agreements, and EU compliance regulations, you’ll find yourself in the same limbo. Making provision now for changed regulations is a key step to take to ensure that this interval doesn’t negatively impact your business.
2. Foreign Investment
The Premier League:
Foreign investment in Premier League teams is seeing a loss with the drop in the GBP, and this is likely to stay an issue until stability returns to the economy. This may deter foreign investors from putting money into the Premier League in the foreseeable future.
Your business:
If foreign investors are deterred from the Premier League, which by all accounts is a pretty attractive investment, your business is in line for the same dip. This means your cash flow will be impacted quite severely if you rely on international investment. Finding ways to keep your company lean and mean in this environment is key.
3. Shrinking Talent Pools
” 50% of top UK graduate employers will cut graduate recruitment if Britain leaves the EU “
This is a broad problem that needs to be addressed because the use of foreign talent in productive business is key, but the parameters for employment could change considerably.
Compliance focus:
The Premier League:
The number of foreign players in the Premier League is now under scrutiny, with the varying contracts for EU and non-EU players being examined. With earnings being taken offshore, tax, contract values, and compliance issues are under the spotlight.
Your business:
If you have workers on your books from EU countries, their compliance standards may now change. In order to keep your business compliant with changing agreements between the EU and Britain, you’ll need to take a leaf out of the Premier League’s book and make a contingency plan to deal with the changing requirements.
Movement of workers across borders:
The Premier League:
The Bosman rule has dictated free movement of players at the end of their club contracts for 20 years, but since it is a European law, it may no longer hold sway in Britain. This means that the regulation of cross-border players will change, and the methods by which they are drafted from season to season will be revised.
Your business:
Any laws governing freedom of movement in the EU now become separate to Britain, and using workers from foreign countries will no longer be so easy. Clearance, visas, and work permits will all change to make a few extra steps in the work-compliance process. Knowing who works for you and what their new requirements will be to stay on your books will be incredibly important.
Brexit: Seeing the positives
While the margin for productive growth and continued success may seem slim, there are still some positives to be found, if you take right actions now.
A head-office move is one such option:
Berlin is doing a drive for new HQ locations within the EU.
Our own Connor Heaney makes an excellent case for an Irish Head Office, that can be easily facilitated by CXC Corporate Services.
For a consult on how you can make sure your business survives and thrives with the changing laws and regulations, partner with CXC Corporate Services and give your business the head start it needs on the Brexit upheavals.
Words by Alison Krumm
