Experts have increasingly been proclaiming that it is only a matter of time when the Premier League will face a severe financial crisis. Large contracts, higher transfer fees and continuous decrease in profits are some of the facts that are undermining the financial success of English Football...

This paper examines the role of collateral in "sudden stop" models that feature occasionally binding constraints and endogenous growth. We show how different assumptions regarding the nature and valuation of collateral alter the dynamics of crisis episodes and the welfare costs of pecuniary...