English Premier League clubs are set for a combined revenue loss of up to £1bn this season due to the impact of COVID-19.
Analysis by global accountancy firm Deloitte showed that up to £500m has already been lost across the 20 clubs – primarily caused by loss of matchday revenues, commercial opportunities and tv money. The other £500m loss is deferred until the 2020/21 financial year, due to the length of the break.
The Premier League will restart on 17 June – and despite plans to complete the season – the damage has already been done.
Dan Jones, partner and head of the Sports Business Group at Deloitte, explained: “We expect the ongoing COVID-19 pandemic to cause significant revenue reduction and operating losses across European football in the current season’s financial results. Clubs are having to weather multiple financial impacts, including rebates or deferrals of commercial and broadcast incomes, as well as the loss of match day income and other event-related revenue.
“Football returning – in a safe and sensible way – is clearly important to limiting the financial impact that the pandemic has had. Leagues across Europe have been responding in different ways and at different paces. The success of each league’s return, and the strength of each one’s relationships with broadcasters and commercial partners, will have a potentially significant and lasting impact on the financial strength of clubs and leagues.
Jones continued: “Nonetheless, we forecast that the restart plans for the Premier League and a number of its peers will cause a rapid recovery in financial results as some 2019/20 broadcast revenues are pushed into the 2020/21 financial year, which may result in a bumper revenue year.
“Much remains uncertain, particularly around the timing and scale of the return of fans to stadiums and the impact on commercial and broadcast partners’ wider businesses. The football industry will be hopeful that a V-shaped recovery and a return to relative financial normality for the 2021/22 season is possible.”