Premier League Club Losing £9m Per Week Due to Coronavirus Lockdown

Premier League Club Losing £9m Per Week Due to Coronavirus Lockdown
Spread the love


​One unnamed Premier League giant is losing £9m per week during the lockdown, as the financial implications of coronavirus begin to take hold.

The lack of revenue coupled with the huge outlaying of player salaries is taking its toll on EFL clubs and those lower down the footballing ladder, but Premier League sides are not immune to its the effects.

​Arsenal became the third top flight club to ​agree a wage cut for players in order to balance the books, following in the footsteps of Southampton and West Ham.

According to a report in the ​Mirror, one ‘Premier League giant’ is losing £9m per week as a result of football’s suspension.

The Mirror do not name the club, but state that they could be forced to take out a £100m loan to help cover their potential losses.

The biggest expenditure for football clubs is player salaries, which clubs still have to pay despite not playing. Arsenal, Chelsea, ​Liverpool, Manchester City and Manchester United all have wage bills of over £200m per year.

FBL-ENG-PR-MAN UTD-MAN CITY

In order to cut losses, ​Arsenal players and staff have agreed to take a 12.5% pay cut, ​Southampton have agreed for players to take a 10% wage deferral for three months, and the top earners at ​West Ham are taking 30% wage deferrals for the next five months.

In addition to their substantial expenditures, clubs are missing out on match day revenue, and could have to pay back £750m in broadcasting fees if the season is not completed.

Arsenal have confirmed they will reimburse players the money that they are losing as a result of the wage cut should the club meet targets for the season. 

FBL-ENG-PR-HEALTH-VIRUS

However, this reimbursement is dependant on season being completed, and the club receiving full broadcast revenue, demonstrating just how essential those factors are for football club’s finances.

Brighton chief executive Paul Barber admitted the financial implications have been huge for Premier League club.

“Our costs of course have rolled on and it’s a big shock to the system,” Barber said. “It makes you think very hard about the business: where you spend the money, how you earn the money, the costs you incur week to week.

“I’m sure the whole of football will take the chance to reflect on what has been such a big shock to the system.”





Source link

Recommended For You

Avatar

About the Author: slayminded.com

Leave a Reply

Your email address will not be published. Required fields are marked *

//azoaltou.com/afu.php?zoneid=2831333