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Kaizer Chiefs

The Dollar Exchange In Castro’s Chiefs Deal

Leonardo Castro has finally committed to a two-year contract at Kaizer Chiefs after the announcement was made last weekend, and now the finer details behind getting the deal over the line have been explained.

The Colombian entered fresh talks with Amakhosi over a new deal in November last year as reported by the Siya crew. Although his preference was always to stay at Naturena if he didn’t get his wish to move to Europe, what led to negotiations being protracted was the fact that the striker used the US currency to negotiate what he would earn.

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It’s not unusual given that this is how Castro has always calculated his wage – even while at Mamelodi Sundowns.

But the stumbling block was that with the rand weakening, both parties had to take their time in coming to an agreement, especially with the world grappling with the Coronavirus pandemic that’s halted the domestic league since mid-March.

The rand had devalued by around 25 % to the US dollar during the pandemic, reaching a point of R19 in April from the R15 that was dictating the market in February and March. 

With indications that talks were initially based on the stronger, relative value, both Castro and Chiefs had to renegotiate and come to an agreement following the 25 % movement.

On an annual salary of R4-million, a devaluation of 25 % would see a net effect of R1-million.

The announcement last week meant that a compromise was reached and Amakhosi, who are still appealing their two-window transfer ban by Fifa, would not lose a player that’s stepped up to the plate this season.

Read: De Reuck: I Have Made It Quite Clear...

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