The Argentine government has stepped in to help resolve the debt crisis hampering the country's cash-strapped clubs that owe huge sums in wages to players and taxes to the government treasury. President Cristina Fernandez has agreed to pay the Argentine Football Association $155 million to broadcast matches on terrestrial television, more than double what the private cable TV company, with which the AFA broke its contract, was paying.
The global credit crunch, as well as poor management, has caused clubs to sell players to European sides for less lucrative fees than in the recent past. Most transfers have been loans or maximum one-year deals negotiated with players who have freedom of contract. Additionally, entrepreneurial agents have cut into clubs' profits by owning part or all of the registration of a growing number of Argentine players.