Premier League face £1b virus loss

FOOTBALL: Premier League clubs are set for a loss of £1billion in revenue in their 2019-20 accounts owing to the coronavirus pandemic, financial services firm Deloitte has predicted.

Deloitte says the top-flight sides will face a permanent loss of £500m made up of rebates to broadcasters and the loss of matchday revenue from the suspension of competition, but that a further £500m missing off the 2019-20 balance sheets will be deferred and recouped in 2020-21 if the competition is able to complete this season and next.

Clubs are forecast to earn around half of what they normally would in matchday revenue in the 2020-21 season, with that estimate of £350m set to be lost if supporters cannot return to stadiums at any stage in the season.

The grim picture comes against the backdrop of clubs posting record revenues for 2018-19, with the Premier League combined revenues topping £5billion for the first time.

Dan Jones, the head of Deloitte’s sports business group, anticipates that around twothirds of the £500m loss will be rebates to broadcasters, with the remaining third related to matchday revenue.

He said: “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 matchday 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.’’