Premier League clubs faced £1bn reduction in revenue due to pandemic

Premier League clubs faced £1bn reduction in revenue due to pandemic
Football clubs had to face reduction in revenue, Source: Web

In 2019-20, clubs of Premier League have to endure a one-billion-pound reduction in their revenues because of the novel pandemic Coronavirus, reported by Deloitte, a financial services company.

In 2018-19, for the first time, twenty top-flight English clubs had a revenue of more than five billion pounds collectively.

Since March, this Premier League season has been pending, and around ninety-two matched will be scheduled to take place behind closed doors.

Premier League clubs faced £1bn reduction in income amid COVID-19
Football clubs had to face reduction in revenue, Source: Web

Significant revenue reduction in European football

Dan Jones of Deloitte hopes massive revenue reduction and operating losses in European football amid COVID-19.

Around five hundred million pounds reduced for Premier League clubs includes refunds of matchday revenue and broadcasters, that will be lost permanently; if this and the upcoming season will not be completed, Deloitte says.

Last month, Manchester United described that the Coronavirus epidemic had previously reduced twenty-eight million pounds, but the club is expecting a significant reduction for the final figure.

Deloitte reviewed an annual football economy

The firm said revenue of the Premier League club ramped up to 5.2 billion pounds for the session 2018-19, which is seven percent higher than previous year revenue.

Although the five most significant European leagues, including France, Germany, Italy, England, and Spain, created a record of fifteen billion pounds.

Ninety-two Football League and Premier League clubs had created a record of 6.2 billion pounds in revenue and paid 2.3 billion pounds taxes to HMRC for the session 2017-18.

Three partitions of the English Football League, League One, League Two and Championship, accomplished a record revenue for the session 2018-19, which crossed one billion pounds collectively for the first time.

Besides this, Championship clubs had lost a combined of three million pounds with the ration of salaries of players to the turnover of 107 percent.

Dan Jones said that you have got 107 percent of income going out on salaries, and you can easily observe the emerging problem.

He added that a wage cap is a dull instrument but if they can only use seventy percent off income on wages and spend that in 2018-19, they take three hundred million pounds out of the salary bill and pave the losses.

In League One, in August, Bury club was expelled by the English Football League (EFL) when a takeover bid collapsed. However, on the other side, Jones says League One and League Two were in an improved place than the previous ten years, before the blowout of the pandemic Coronavirus.