Business

Coronavirus effect: the loss of income of football clubs is 2,000 million euros

Deloitte Sports Industry Group predicted that Football Money League clubs will lose € 2 billion in revenue at the end of the 2020/2021 season due to the Covid-19 outbreak.

The report explains the drop in revenue for two main factors, lapses and the total loss of revenue (mainly match day revenue and also discounts for live broadcasters).

Given the impact of these delays, it is seen that approximately a quarter of the income of many clubs for the fiscal year ending in 2020 has been carried over to the fiscal year ending in 2021; therefore, 2021 appears to cover a quarter of the additional revenue.

In the report, which underlines that the world’s leagues show different reactions, ranging from postponing matches to epidemic, ending leagues with different qualifying methods and canceling completely, with spectators being able to return to stadiums safely and from healthy way is currently among the top priorities of world football.

Not only is match day revenue an integral part of club business models, it is also the trigger for different revenue generating elements.

According to the report, clubs will feel the main effect of being deprived of audiences more next year. The extent of this effect will depend on when the spectators return to the stadiums.

THE SUMMIT CLUB HAS NOT CHANGED

FC Barcelona With 715.1 million euros in revenue, it was at the top of the Money League, just like last year. It was followed by Real Madrid, which generated 714.9 million euros in revenue. The 200,000 euro difference between the two stands out as the smallest difference between the top two clubs in the history of the Money League.

FC Barcelona, ​​which was the first club to cross the 800 million threshold with a record income of 840 million euros in 2019, this time became the club that experienced the largest decline in absolute value among all clubs of the Money League.

Real MadridThe decrease in income was less. The club increased its business income by € 28.1 million by extending the life of key business associations and incorporating some income-generating activities, easing the decline in the other two items for white-violet somewhat.

Bayern Munich it rose to third place this year (634.1 million euros). The German giant, which experienced the lowest revenue loss (4 percent) among the top 10 clubs, benefited from the fact that all domestic broadcast revenue for 2020 was included in its financial statements as a result of the early termination of the Bundesliga. Bayern had an unforgettable season by winning the Champions League, the Bundesliga Championship, the German Cup (DFB Pokal) and finally the UEFA Super Cup.

Completing the season with revenues of 580.4 million euros United manchester131.1 million euros (19 percent) in revenue brought the team to fourth place. The Red Devils, the club that experienced the biggest drop in the Money League this year, paid the bill for not participating in the 2019/2020 Champions League, in addition to being deprived of matchday income and reductions and postponements in the transmission income.

Liverpool It was in the top five for the first time since 2001/2002. The rojiblancos’ sporting success, which has continued steadily in recent years, is also reflected in their financial success.

Manchester City (6th), Paris Saint-Germain (7th), Chelsea (8th), Tottenham Hotspur (9th) and Juventus (10th) are 10 other top clubs.

18 of the top 20 clubs were also on the list last year. In 15th place, FC Zenit, and 20th, Eintracht Frankfurt replaced AS Roma and West Ham United. Zenit’s participation in the 2019/2020 Champions League and seasonal income minimally affected by the pandemic were the main positive factors for the club, since its fiscal year was December 31, 2019.

Only two of the top 20 clubs in the Money League saw an increase in revenue compared to the previous year: FC Zenit and Everton.

Everton, which reached € 212 million in turnover with a slight increase and placed 17th, left behind a season in which its commercial revenues more than doubled. This also marked the highest business revenue growth (104 percent) among all Money League clubs.

THE TURKISH CLUBS WERE NOT INCLUDED IN THE LIST THIS YEAR

For the second year in a row, no Turkish club could participate in the Deloitte Football Money League. The last Turkish club to be on the list was Beşiktaş, who ranked 26th in 2019. In the last 10 seasons, the three biggest from Istanbul represented our country by participating 8 times in the 30 best clubs in the Money League (Galatasaray 5 , Fenerbahçe 2 and Beşiktaş once).

According to the report, the Covid-19 outbreak has created significant momentum for clubs to reconsider and reshape their current strategic goals and business models to get out of their current situation.

As digital contact has become the most dominant method in their interactions with their employees and fans, clubs tend to develop their digital competencies both internally and externally. In this challenging period, the most agile and innovative clubs will be the fastest and strongest clubs to regenerate.

Sports Industry Group, the continuity of the uncertain environment; While noting that current and future broadcasters, sponsors and business partners need to reconsider and evaluate their investments in sports and soccer, which may cause the financial impacts of Covid-19 to spread over a longer period, the importance of football for fans and society said He also reminds us that it is a positive development that Football Money League clubs present an argument that will strengthen their statements with broadcasters and sponsors.

FILE: FOOTBALL CLUBS ARE OUT

Source: www.ntv.com.tr

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