Chelsea’s English midfielder Callum Hudson-Odoi (2L) celebrates with teammates after scoring his team’s third goal during the English Premier League football match between Chelsea and Burnley at Stamford Bridge in London on January 11, 2020. (Photo: AFP)
Premier League clubs made a combined loss of £600 million in the 2018/19 season, even before suffering the financial pain of the coronavirus pandemic, a report revealed on Tuesday.
Analysis from football finance experts Vysyble shows the 20 clubs in the English top-flight combined to post the huge loss despite record revenues of £5.15 billion ($6.6 billion)
The financial impact of COVID-19 is set to have a huge impact on the Premier League, even if plans to complete the current season behind closed doors go smoothly.
Premier League sides face paying a reported £330 million to broadcasters in rebates as matches could not be completed on schedule.
An estimated £126 million could also be lost in matchday income from gate receipts and hospitality.
“The COVID-19 virus is not the cause of football’s financial distress. It is merely the accelerant on what our data has very clearly and very correctly identified as a much longer-term problem,” said Vysyble director Roger Bell.
“The 2018/19 numbers are a disturbing and profoundly worrying financial outcome from England’s senior football divisions and is symptomatic of the deeper issues with the overall financial model.”
Wage costs for Premier League clubs have risen to £3.12 billion.
Everton posted alarming losses of £111 million, while Chelsea’s failure to qualify for the Champions League saw the Blues lose £96 million.
Yet the most worrying sign for the future financial health of the league may come from Tottenham.
Spurs posted a league-high profit of £68.6 million for the 2018/19 season on the back of a run to the Champions League final