Premier League clubs are facing revenue losses of up to £1bn following the financial impact of the coronavirus pandemic, according to Deloitte.
The financial services firm has warned clubs of the huge losses anticipated in the wake of the global crisis, with the rebates to broadcasters and commercial partners, alongside match-day revenue lost from playing fixtures behind-closed-doors, set to contribute to the staggering sum.
The news comes after it was revealed Premier League sides received a record combined revenue of more than £5bn for the 2018/19 season, a figure which is expected to drop to around £4.3bn for this season.
According to Deloitte’s findings, around half of the predicted losses – including broadcaster’s rebates and match-day revenue losses – will be ‘permanently lost’, with the company’s Dan Jones admitting “significant revenue reduction and operating losses” are expected across European Football.
The uncertainty surrounding next season also means an estimate of £350m has been made for match-day revenue, a figure calculated on the basis of a phased reopening of stadiums to supporters. That figure, however, remains considerably lower than the £680m Premier League sides received in match-day revenue during the 2018/19 season.
The grim forecast is even bleaker when looking further down England’s footballing pyramid, with Jones advising Championship sides to work towards a salary cap of 70% to ensure survival during the crisis.
Despite the Championship, League One and League Two all receiving record revenues during 2018/19, clubs in English football’s second tier lost a combined £300m, with a ratio of players’ wages to turnover an unsustainable 107%.
Jones did, however, anticipate that football would be able to recover financially and quickly once the sport returns to normality.
He said: “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,” Jones said.
“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.”