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Arsenal to propose wage cuts, players to refuse but open to possible wage deferrals

Writer's picture: Andrew ZarbAndrew Zarb

It seems as though Arsenal intend to cut players' wages due to the Coronavirus pandemic, though will players accept?

As a result of the Coronavirus pandemic, which is causing huge concern among football clubs from a financial point of view - since no revenues are coming in whilst fixed costs are still being incurred, it is understood that Arsenal are keen on cutting players' wages by 12.5% for a year, in a move which would reportedly save the club around £25m in wage costs.

The proposal by the club is believed to be the following: - A 12.5% pay cut for 12 months, which amount would be refunded in full were Arsenal to qualify for the Champions League - If Arsenal were to qualify for the Europa League, the pay cut would be down to 7.5% - If the current Premier League season, which has of course been suspended due to the Coronavirus pandemic, does not finish, and/or Arsenal do not receive the full money they expect to from broadcasters, the club would then have to look at "further solutions"

However, it is believed that the Arsenal players are set to reject the proposal of pay cuts, though it is understood that they are open to the idea of wage deferrals (meaning their wages due now get paid at a later date). It is important to note that the club must pay a player's wages in full and on time, unless an agreement is reached otherwise. If a club opts to defer/cut a player's wages without an agreement, this would constitute a breach of contract and it would allow a player to leave the club for free (admittedly where a player would be able to go at this moment in time is highly debatable). Also, it must be pointed out that if a player refuses to take a pay cut or wage deferral, then the club cannot release that player simply for refusing to accept, and if so, a player could take the club to court on grounds of unfair dismissal. In their 2018/19 accounts, Arsenal had a total wage bill of around £230m and it is believed that the club were keen on trying to reduce that bill before the pandemic struck. The fact that Arsenal are already considering wage cuts implies that the club may run into financial difficulties and would need to significantly reduce costs in order to remain afloat.

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