One of my favorite bloggers "Rapidhammer" was creative again today noting that the English £ has lost 30% of its value compared to the European €, and discussing the consequences (His post in German HERE).
He also refers to an interesting article by timesonline, that talks about how the reduced value of the £ has in effect increased the price of players in non £ countries, for English teams.
Example: as the value of the West Ham money decreases the quality of €-players that can be bought for a given amount of £ also decreases.
But it will also affect the prices on English players!
The football market in Europe is not totally open. Most British players seem to fancy to apply their trade in England rather than in other EU countries (not to mention other countries) but still, it will affect the price of English players.
Example: After the loss of value of the £, a German club can see it's refused €10 million bid (worth £7 million a during the summer transfer window) now being considered by the English team since it's now actually a £10million bid. A British club trying to move for the same player will most likely have to match that German bid. Hence, the price also for English players are going up for the English teams.
Now there is a economic crisis going on as well as a PL-bubble and I think it must push the "average player price" downwards as the amount of money that is available for transfers is most likely going down. But the relative change in player prices between England and €-countries is still there even if prices are going down in England.
So to sum it up: All players will be harder to afford for the English teams compared to continental teams. The price of English players will probably be affected less than players now playing in other countries.
From a West Ham point of view this seems a bit worrying since the strategy at the moment may be to invest in foreign players, funded by the sale of English.
However, I think the biggest worry is for the quality of the PL in general and (initially) the "biggest" teams in particular. Can PL teams compete with their continental counterparts when the bidding starts, and can the "big 4" afford players of Champions league Quality?
Where are the football economists when you need them?