Home » The Premier League is dealing with Covid: losses already at one billion pounds

The Premier League is dealing with Covid: losses already at one billion pounds

by admin

Covid cost the Premier League nearly £ 1 billion and a 13% drop in revenues in the 2019-2020 season. Even more serious consequences are expected on the season that is about to end in which the pandemic has forced the closure of the stadiums for almost all the championship. These are the inevitable conclusions of the Deloitte report. But the damage from Covid is not only derived from the absence of the public in the plants.

The Deloitte report

In fact, the absence of spectators was combined with a delay in the payment of revenues from television rights which led to a decline in the market of the richest league in Europe with a collective loss (before tax) of just under 1 billion of pounds, almost five times higher than the previous season. English clubs recorded their first ever collective decline in revenue, which fell by 13% to £ 4.5bn from the previous season. Starting in 1992, Premier companies have only recorded pre-tax profits four times in two decades, all from 2013 onwards. Operationally, clubs had moved towards profitability until 2018-19, the season before the pandemic: in 2019/20, less than a quarter of clubs recorded a profit on their balance sheet. Dan Jones di Deloitte commented on the Premier League numbers as follows: “The decrease in revenues in the 2019-20 season is, unsurprisingly, due to the global economic and social upheaval caused by the Covid-19 pandemic and will continue to have a heavy impact on 2020 / 21 “.


The losses of the clubs

Among the clubs, the Manchester City recorded a loss of £ 125.1 million in the 2019-20 season, second only toEverton, which recorded a red of 139.9 million. Despite the decline in revenues, Premier League clubs increased their spending on salaries by 3% in 2019/20, with the figure hitting a record 3.3 billion pounds in 2019-20. , the lowest percentage increase in salaries since the 2004-05 season. The pandemic, on the other hand, cost the Liverpool losses of 120 million pounds (approximately 141 million euros).

See also  Sassuolo-Cremonese: video, goals and highlights

The impact on 2021

“The absence of fans, the postponement of matches and the discounts to the broadcasters have had a significant impact on the revenue that the clubs have been able to generate – explains Jones -. The full financial impact of the pandemic on the Premier League will depend on the timing of fans returning to stadiums in significant numbers and the ability of clubs to maintain and develop their business relationships, particularly at a time when many other industries are suffering. Matchday operations are a cornerstone of a club’s business model and the absence of fans will be more fully reflected in the financial results of the financial year 2020/21. Once the fans are able to return to full capacity at the stadium, hopefully during the 2021/22 season, the Premier League clubs have the potential to return to record levels of revenue again.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy