Which Wimbledon Player Could Lose the Most from Winning Post-Brexit?
Posted by Matthew Andrews on July 5th, 2016.
It will hardly have escaped your notice that Britain voted to leave the European Union on June 23rd, but little is known about what that actually means for the future of the economy. Britain’s political landscape is in turmoil, big businesses are considering relocation and the country is more divided than ever.
One of the instant reactions to the historical decision to Brexit was a large drop in the value of the Pound. Having crashed to a 31-year low against the US Dollar, Sterling has failed to sustain any sort of marked recovery as weak data highlights the detriment such a long period of uncertainty in the build up to the referendum result had on the UK.
Now that the UK has voted to sever ties with the European Union, expectations are that economic data will print poorly for some time to come, and the Pound will remain comparatively weak.
Wimbledon Grass is Not Greener for Players After the EU Referendum
The return of the Wimbledon tennis grand slam is a welcome distraction from the tumultuous atmosphere in Britain. It is a national institution that has the power to unite people even under such difficult circumstances. After all, British favourite Andy Murray is a Scott with plenty of support from all the countries in the United Kingdom.
Whilst on the surface Brexit has had no impact on the competition, this year is likely to see the lowest prize money in some years, even though total winnings have had a healthy 5% increase. This is because the value of the Pound has fallen greatly against all the world’s currencies, meaning those foreign players wishing to transfer winnings from the UK back home will see a large chunk swallowed by an unfavourable exchange rate.
Which Player Stands to Lose Most?
In 2016 the prize money for winning Wimbledon’s Gentleman’s Singles and Ladies’ Singles Title is a cool £2million.
Of the players remaining in the singles title race, Andy Murray stands to lose the least from his winnings (nothing!) given that he will have no need to exchange funds. The other players will not be so lucky.
SAM QUERREY (USA)
SERENA WILLIAMS (USA)
VENUS WILLIAMS (USA)
Prior to Brexit the GBP USD exchange rate reached a high of 1.5005. At this rate the £2,000,000 prize money would equate to $3,001,000.
After Brexit the GBP USD exchange rate crashed to trade in the region of 1.3061. At this rate the £2,000,000 prize money would equate to $2,612,200.
Total Loss = $388,800.
MILOS RAONIC (CAN)
Prior to Brexit the GBP CAD exchange rate reached a high of 1.9110. At this rate the £2,000,000 prize money would equate to CAD $3,822,000.
After Brexit the GBP CAD exchange rate fell to trade in the region of 1.6906. At this rate the £2,000,000 prize money would equate to CAD $3,381,200.
Total loss = CAD $440,800.
ROGER FEDERER (SUI)
Prior to Brexit the GBP CHF exchange rate reached a high of 1.4459. At this rate the £2,000,000 prize money would equate to CHF 2,891,800.
After Brexit the GBP CHF exchange rate declined to trade in the region of 1.2695. At this rate the £2,000,000 would equate to CHF 2,539,000.
Total loss = CHF 352,800.
MARIN CILIC (CRO)
Prior to Brexit the GBP HRK exchange rate reached a high of 9.8809. At this rate the £2,000,000 prize money would equate to kn 19,761,800.
After Brexit the GBP HRK exchange rate plunged to trade in the region of 8.7836. At this rate the £2,000,000 prize money would equate to kn 17,567,200.
Total loss = kn 2,194,600.
TOMAS BERDYCH (CZE)
Prior to Brexit the GBP CZK exchange rate reached a high of 35.5552. At this rate the £2,000,000 prize money would equate to Kč 71,110,400.
After Brexit the GBP CZK exchange rate crashed to trade in the region of 31.6971. At this rate the £2,000,000 prize money would equate to Kč 63,394,200.
Total loss = Kč 7,716,200.
LUCAS POUILLE (FRA)
JO-WILFRIED TSONGA (FRA)
DOMINIKA CIBULKOVA (SVK)
ANGELIQUE KERBER (GER)
Prior to Brexit the GBP EUR exchange rate reached a high of 1.3136. At this rate the £2,000,000 prize money would equate to €2,627,200.
After Brexit the GBP EUR exchange rate tumbled to trend in the region of 1.1709. At this rate the £2,000,000 prize money would equate to €2,341,800.
Total loss = €285,400.
ANASTASIA PAVLYUCHENKOVA (RUS)
ELENA VESNINA (RUS)
Prior to Brexit the GBP RUB exchange rate reached a high of 96.6682. At this rate the £2,000,000 prize money would equate to руб 193,336,400.
After Brexit the GBP RUB exchange rate dropped to trend in the region of 83.8934. At this rate the £2,000,000 prize money would equate to руб 167,786,800.
Total loss = руб 25,549,600.
Obviously for most players the recognition for winning a grand slam event means far more than the money, and high-level players will make much more from sponsorship and advertising. However, those players may still wish to store winnings in a British bank account until Sterling recovers some ground.
There is a high chance that the GBP exchange rate will not reach pre-Brexit levels for a considerable period to come, but Sterling’s trade weighting is still likely to recover slightly as the dust settles and the UK’s future becomes less clouded.
But for now, enjoy the Tennis!
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