The coronavirus pandemic has had a massive impact on football with all football leagues and competitions currently suspended to contain the spread of the virus. The suspension of football has cost the European top 5 leagues heavily with many clubs asking players and staff to take a wage cut. With no TV revenues, gate receipts and sale of merchandise, it will be a long road back for football clubs to get back to their financial best.
Premier League boasts of one of the most lucrative TV deals and face the prospect of returning a massive £762 million ($945 million) to Sky Sports and BT Sports if the current season is cancelled due to the coronavirus pandemic. The sum owed will be due to the breach in contract terms agreed for domestic and international television rights. To add to that misery, those estimated losses to be incurred by Premier League clubs is unlikely to be covered by insurance and is expected to make a major hole in their pockets. Premier League clubs like Bournemouth, Sheffield United and Norwich could struggle further with a major chunk of their revenue coming from the existing TV rights deal.
While LaLiga is some way off the Premier League in terms of TV rights and revenues generated, their losses suffered due to the coronavirus pandemic are also staggering. LaLiga could lose up to $753 million if the current season is cancelled according to a report by Forbes.com. The total loss includes $608 million out of $97.5 million come from La Liga TV subscriptions and another $45.9 million from gate reciipts. The loss of revenues will have a huge impact of mid and bottom table LaLiga clubs and LaLiga President Javier Tebas had admitted in an interview that the damages will be as such that it will take a few years to get back to the current situation.
💰 Coronavirus vs football – the estimated aggregated loss of the top five football leagues in case of a complete cancellation of the game can reach up to EUR 4 billion, according to KPMG Football Benchmark calculations.— KPMG Football Benchmark (@Football_BM) March 18, 2020
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Italy has been one of the worst affected areas due to the coronavirus pandemic. The Serie A was the first of the top five leagues to suspend their season after numbers contracted the deadly virus. According to a study by KPMG, Serie A could lose $487 million from TV revenues if the current season is cancelled. Italian football clubs could lose commercial and sponsorship revenues contracts, which could amount to a further $160 million loss. The losses could render many clubs 'financially unstable', with many Serie A clubs reportedly set to ask the Italian government for financial assistance if the season is cancelled due to the coronavirus pandemic.
Bundesliga are closing in on a return to action but await permission from the German government. Bundesliga could lose up to €770 million in TV, sponsorship and ticket money, according to a report by the FAZ, if things go wrong and the current season is called off. The French Ligue 1, on the other hand, could lose up to $216 million in TV revenue alone with the season now cancelled. According to ESPN, teams in Ligue 1 and Ligue 2 are under very severe financial peril with government-aided partial unemployment and a freeze on employers' costs related to players' salaries is all that is keeping some of the clubs afloat.