Daily Maverick
Dailymaverick logo

Business Maverick

This article is more than 5 years old

Business Maverick

Covid Chaos Pushes Top English Soccer Clubs to Worst Ever Losses

England’s Premier League soccer clubs racked up the biggest collective loss in their history last year, according to figures released Tuesday that lay bare the scale of the damage from the pandemic.
Bloomberg
By Bloomberg
15 Jun
Leicester City v Tottenham Hotspur - Premier LeagueLEICESTER, ENGLAND - MAY 23: The official Nike Premier League match ball during the Premier League match between Leicester City and Tottenham Hotspur at The King Power Stadium on May 23, 2021 in Leicester, England. A limited number of fans will be allowed into Premier League stadiums as Coronavirus restrictions begin to ease in the UK following the COVID-19 pandemic. (Photo by Visionhaus/Getty Images)

The pretax loss of 1 billion pounds ($1.4 billion) for the 12 months to last March was caused by a 13% slump in revenue after games were halted, ticket sales evaporated and broadcasters sought rebates, the data from Deloitte showed.

It marks the first time that their combined revenue has fallen since the world’s richest soccer league was established almost three decades ago. The numbers were compiled from the financial accounts of 18 Premier League clubs and estimates for the other two.

Clubs avoided the worst when play was allowed to resume after the first wave of the virus. Some teams in countries such as France and the Netherlands are fighting for survival after competitions there were abandoned entirely.

Premier League revenue could bounce back to pre-Covid levels in the upcoming season, said Dan Jones, partner and head of the Sports Business Group at Deloitte.

“The Premier League went into the Covid crisis way stronger than other leagues and it is coming out of it stronger than other leagues,” said Jones. “I expect the Premier League will be a very clear leader of the pack.”

The revenue drop pushed the ratio of club wages-to-revenue to a record 72%. Combined spending on wages grew 3% -- the smallest percentage increase in 15 years.

Comments

Loading your account…

Scroll down to load comments...