‘Europe’s top clubs face two billion euros virus hit’

Published January 27, 2021
Deloitte’s latest Football Money League report shows that revenues of the top 20 clubs analysed fell by 1.1 billion euros in the 2019-20 season due to closed stadiums and television rebates. — AP/File
Deloitte’s latest Football Money League report shows that revenues of the top 20 clubs analysed fell by 1.1 billion euros in the 2019-20 season due to closed stadiums and television rebates. — AP/File

LONDON: The coronavirus pandemic could cost Europe’s 20 highest-earning football clubs over two billion euros ($2.4 billion, 1.4 billion), according to forecasts from financial experts Deloitte.

Deloitte’s latest Football Money League report shows that revenues of the top 20 clubs analysed fell by 1.1 billion euros in the 2019-20 season due to closed stadiums and television rebates.

Some of that revenue will be recouped in the accounts for the 2020-21 season. The financial year at most clubs ends on June 30, meaning some prize money and broadcast income for domestic leagues and European competitions that completed beyond that date is not included in last season’s figures.

However, the ongoing effects of the virus will make an even bigger dent on club finances in 2020-21 with stadia largely shut to supporters across the continent for the entire season so far and little sign of restrictions being eased.

Even as the games have gone on behind closed doors, broadcasters have been compensated for a disruption to the original schedule and the lack of atmosphere produced by empty stadiums.

Rebates for Europe’s ‘top five’ leagues in England, Spain, Germany, France and Italy, and UEFA’s Champions League and Europa League competitions already total almost 1.2 billion euros.

“We usually release our money league and talk about the growth in revenue but of course football is not immune to the Covid-19 pandemic,” said Tim Bridge of Deloitte’s Sports Business Group.

“The revenue that’s been missed out on is driven by the lack of fans in the stadium, the lack of interaction on a matchday — fans spending in the club shop and buying food and drink — and there is an element that relates to revenue that broadcasters have either clawed back or deferred to next year.”

Spanish giants Barcelona maintained their position at the top of the revenue table despite their income falling 15 per cent to 715 million euros.

However, the Catalans are still mired in an economic crisis due to spiralling debts of 1.2 billion euros according to accounts released by the club on Monday.

Real Madrid remain second, just 200,000 euros behind Barca’s revenue.

Bayern Munich leapfrogged Manchester United into third due to the English club missing out on Champions League football last season.

In fourth, United are still the highest-ranking English side among seven Premier League clubs — also featuring Liverpool, Manchester City, Chelsea, Tottenham Hotspur, Arsenal and Everton — in the top 20. Zenit Saint-Petersburg are the only club outside the top five leagues among the list.

Speculation has mounted over a breakaway European Super League, but last week FIFA and UEFA warned any players who take part in such a competition would risk being banned from major international tournaments such as the World Cup.

Published in Dawn, January 27th, 2021

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.