Premier League clubs will face a $1.26 Billion (£1billion) drop in revenue because of the coronavirus pandemic, with half of that lost permanently, a Deloitte report claims.
Clubs posted a collective $6.6 billion (£5.2 bn) revenue during the 2018/19 season, a 7% increase on the previous year, but the trend is set to be bucked this season.
The report anticipates the Premier League to lose around $1.26 Billion (£1billion) in revenue this season, despite plans to restart the competition on June 17.
Almost $635 Mn (£500m) will be lost permanently due to loss of match-day revenue and rebates on broadcast and commercial deals.
The other half is expected to be deferred to the 2020-21 financial year, given almost a quarter of the season will be played beyond June 30.
The 20 English top-flight clubs had a combined revenue of more than $6.35 billion (£5 bn) for the first time in 2018-19. Manchester United said last month that the pandemic had already cost them 35.54Mn, but they expect the final figure to be far higher.
But this season has been on hold since March, and the 92 remaining matches will be held behind closed doors.And Deloitte’s Dan Jones expects “significant revenue reduction and operating losses” in European football.
Key findings from Deloitte’s annual review of football finance
The Premier League clubs’ revenues rose to $6.6 billion (£5.2 bn) in 2018-19 – up 7% on the previous year.
The ‘big five’ European leagues (England, Spain, Italy, Germany and France) generated a record $19.03 billion (£15 bn) in revenue – up 9%.
Premier League clubs’ aggregate operating profits fell 5%
The 92 Premier League and Football League clubs generated a record $7.87 billion (£6.2 bn) in revenue, and contributed $2.92 billion (£2.3 bn) in taxes to HMRC (2017-18: £2.1bn).
Premier League clubs made combined pre-tax losses of $209.5Mn (£165m).