Despite resumption of action after the COVID-19 enforced suspension, this season is going to be harsh on the Premier League football cubs,
The financial impact of Covid-19 is set to be huge on the Premier League, even if plans to complete the current season behind closed doors go smoothly. The clubs have already incurred a combined deficit of £600 mn ($764 mn) in the 2018-2019 season, a report released by Vysyble on Tuesday has revealed.
The deficit this year is going to be much bigger even if all the remaining games are completed on resumption of the league, which is scheduled to restart from July 17.
The clubs will have to forgo gate receipts as the matches will be played in empty stadiums and there will be an additional financial load of a reported payout of £330 mn to broadcasters in rebates for disruption in schedule.
The report, however, suggests that COVID-19 is not the sole cause of losses. “The Covid-19 virus is not the cause of football’s financial distress. It is merely the accelerant on what our data has very clearly and very correctly identified as a much longer-term problem,” said Vysyble director Roger Bell.
“The 2018/19 numbers are a disturbing and profoundly worrying financial outcome from England’s senior football divisions and is symptomatic of the deeper issues with the overall financial model.”
Gross wages for the league too have gone up by £3.12 billion.
Among the clubs in major deficit are Everton (£111 mn), while Chelsea has lost £96 mn for missing out on the Champions League berth. Tottenham Hotspurs, who posted a £68.6 mn profit on revenue from reaching the Champions League 2018-19 final, have declared a borrowing of £ 75 million from the Bank of England.
The club is fearing a deficit of £ 200 mn next year for losing out matchday revenues and cancellation of allied events like NFL matches and concerts coupled with rebates owed to broadcasters.