Skip to main content

Covid-19 hits football hard say Deloitte

Deloitte Sports Business have produced an update of their 2020 Money League to take account of the impact of Covid-19 on the football industry.   I will attempt to summarise some of the main insights, but the whole document repays reading: https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/covid-19-football-and-digital-2020-21-season-and-beyond.html

The main take home lesson is that the impact of Covid-19 is potentially destructive, but it is up to each club to be agile and develop strategies that will enable them to cope.   Deloitte estimate the total revenue loss for the 20 richest clubs at €2bn by the end of the season.

Bayern Munich overtook Manchester United to become the third highest earner behind Barcelona and Real Madrid.  The German club's revenues were €634m compared with €580m at Manchester United.  The Bundesliga's quicker resumption of play in 2019/20 was a factor for Bayern Munich.   The Bundesliga was also able to negotiate a television deal that was relatively favourable in the circumstances.

Commentary from Forbes with special reference to the Bundesliga here: https://www.forbes.com/sites/manuelveth/2021/01/26/deloitte-report-bundesliga-covid-19-restart-limited-financial-impact/?sh=28951004672f

As we have noted before, the prospect of big losses has made the idea of a European Super League more attractive to top clubs.  Deloitte partner Dan Jones, one of the leading experts on football finance, warned 'of the disruption and risk that comes with the super league.'  

He added that he was 'fundamentally quite positive ... that top level sport will rebound well and we will get some normality.  It feels like people are trying to fix something that isn't broken.'

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day ...
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more