How Soccer Agents Gabriele And Valerio Giuffrida Tackle The Transfer Market’s Financial Challenges

For Gabriele and Valerio Giuffrida, two of the most reputable agents in Italian soccer, the success of a soccer agent is not only measured by their negotiation skills; It’s also a product of their ability to analyze and respond to the transfer market’s most recent financial needs.

“Today, we basically act as a sort of financial advisor for teams,” said Gabriele Giuffrida, who alongside his younger brother Valerio runs GG11, a Rome-based agency that manages clients in some of the world’s most competitive soccer leagues.

Becoming Financial Advisors For Clubs

GG11’s market value sits at €112 million ($121m) according to Transfermarkt estimates, with a list of over 30 clients that include AC Milan’s head coach Stefano Pioli, AFC Bournemouth’s attacking midfielder Hamed Traore, Serie A’s Empoli goalkeeper Guglielmo Vicario and RedBull Salzburg’s talented center-back Oumar Soulet.

When we sat down for a conversation in Milan last week, Gabriele and Valerio Giuffrida explained that while European soccer’s transfer market continues to move hundreds of millions of dollars every year, it has experienced a significant slowdown in the aftermath of the pandemic.

Because these times of financial uncertainty require soccer agents to have a clear picture of each team’s spending power, Gabriele and Valerio Giuffrida rely upon GG11’s internal department to conduct due diligence on clubs ahead of any transfer negotiation.

“We have another area within our team, which is probably the one that’s currently yielding the best results,” said Gabriele Giuffrida. “It’s the analysis of the clubs’ economic and financial situation.”

This process entails breaking down a club’s balance sheet, including expenditures, revenue, wage bill, amortization costs, contract expiration dates, players’ future value and the team’s most recent inbound and outbound transfer activity.

With its in-house financial analysis, GG11 pinpoints which player is likely to be unloaded from a soccer club’s roster and which one could represent the most suitable replacement in terms of affordability.

By the time they sit down at the negotiation table with club executives, Gabriele and Valerio Giuffrida have already gauged that club’s financial standings and can thus focus on discussing the transfer operations that it will realistically be able to sustain.

“Today, we basically act as a sort of financial advisor for teams,” Gabriele Giuffrida concluded.

Reaching Beyond Italy

Among Europe’s top-five soccer leagues, Italy’s Serie A especially felt the financial repercussions of the pandemic.

Numbers indicate that the Italian clubs’ financial woes have virtually frozen any transfer spending in Serie A, discouraging clubs from acquiring players on a permanent deal and often forcing them to veer onto more budget-friendly loan options.

“As long as income from merchandise, sponsorship and match-day operations remains this low, the investments that Italy can make will be limited. It’s no longer the dominant league that it used to be 20 years ago,” said Valerio Giuffrida.

To avoid being too reliant on the languid pace of Italy’s transfer market, GG11 has been working to establish a player network that reaches beyond the domestic boundaries.

Aside from having been operative in Italy and England for over seven years, last month GG11 opened a new subsidiary in Abidjan, Ivory Coast, becoming Europe’s first soccer agency to have an office in Africa. They identified Abidjan as a strategic location to stay in close proximity to what they regard as an emerging, highly-promising soccer market.

“We want to position ourselves as an agency that acts as an intermediary to foreign markets,” Valerio Giuffrida said. “This is the reason why we opened up to foreign championships.”

Can The MLS Steal The Show?

One of the soccer markets that Gabriele and Valerio Giuffrida believe holds strong potential is North America.

Recent high-profile additions to the Major League Soccer, like UEFA Euro 2020 winners Lorenzo Insigne and Federico Bernardeschi, indicate that the league is becoming increasingly more appealing to European stars, even when they are at their career peak.

“It’s not true that the North American League is intended for soccer players at the end of their career. The athletic level has grown so much that older players would now struggle,” said Valerio Giuffrida.

“We hear from players that there is a tendency on their side to move to the U.S. league. It’s attractive because of its modern stadiums, full crowds and big enthusiasm.”

GG11 represented Nelson Valdez in his successful move to Seattle Sounders back in 2015, as the Paraguayan center-forward went on to lead his side to its first MLS Cup title. Last February, GG11 closed the deal that brought Colombian defender Brayan Vera to sign with Utah-based Real Salt Lake.

Gabriele Giuffrida admitted noticing a big difference in the way MLS clubs conduct transfer negotiations with respect to what he is used to experiencing in Europe.

He described the process of brokering deals with general managers in the MLS as “very pragmatic” and restricted by the presence of a “well-defined protocol with limited negotiation margins.”

While the growth of the North American soccer league is undeniable, transfer rules in the MLS might need to change to attract world-class talent.

To develop into a top-rated destination and beat competition from other emerging soccer markets, such as the Saudi Arabian one, Gabriele Giuffrida believes that the MLS should consider amending some of the policies that currently govern, and in many ways limit, the scope of the league’s transfer activity.

“The MLS needs to understand what is the best way to enter the European market,” he said. “I do not believe it will choose to maintain a sui generis system, so it will need to adapt to the rest of the world.”