Sports Business : COVID-19 forced cancellations may cost Serie A € 720 mn

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Italian Serie A tends to lose up to € 720 million in revenues is the action does not resume this season.

The global pandemic has affected Italy the worst the world over with more than 4,000 deaths, highest in any single nation, while more than 47,000 people have tested positive for the virus which still has no anti-dose. Though China has recorded 81,000 Coronavirus positive cases, fatality rate is much lower at the epicentre of COVID-19 pandemic.

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The rising rate of deaths due to Coronavirus infection makes scenario the most grim for Italy. There is no possibility in sight of the sports action resuming anytime soon in Italy.

Prime Minister Giuseppe Conte had officially put pen to paper on the order proposed by the Italian Olympic Committee — which had called for the immediate suspension of all sport in Italy.

According to a Deloitte report,  Serie A’s losses due to cancellation of the remaining season could mount up to € 720 mn.

Italian Prime Minister Giuseppe Conte had last week officially approved suspension of all sports in Italy following a national Olympic Committee order.

“All of Italy will become a protected area now and is in lockdown,” Conte had said last week, after signing the national Olympic Committee order to put all sport in the country on hold indefinitely. “All leagues will be suspended — the Presidents of all the regions in Italy agreed with this measure. These measures will take effect tomorrow.

“I feel sorry for all of the fans but we have to suspend Serie A”. relate to broadcasting revenues, which could record a decrease of 450 million euros.

There though appears a hope amidst despair. Italian Sports Minister Vincenzo Spadafora has hinted that the league might resume in May. Spadafora had explained to national TV channel the updated plan, including a late decision on whether or not games would be played behind closed doors, depending on the situation at the time.

“I believe that Serie A can return on 3rd May,” he has reportedly said. “Then we will evaluate whether it’s played behind closed doors, or open to the public,” Sportspromedia has quoted him as saying.

“This formula will then be added to international competitions, like the Champions League and Europa League.”

Spadafora also confirmed that clubs will be exempt from having to make payments to the Government for the coming period, to ease the worries of cash flow after matches were postponed.

Serie A suspended season still has 124 pending games worth gross commercial value of over € 700 mn – € 90-100 mn match day earning, € 350-450 mn broadcast values and € 100-150 mn other commercial gains.

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