As the most followed football league in the world, the Premier League enters the third week, Manchester United are set to lose an estimated £116.4 million owing to the Coronavirus pandemic that scraped off television revenue, matchday revenue, and revenue from other streams according to data by Safebettingsites.com
This, the Safebettingsites.com study shows the highest financial loss among the 20 teams that competed in the previous season.
Manchester United, after Real Madrid FC, is ranked the second most valuable professional football club in 2020, with €3.3bn in midpoint enterprise value, a 4.2 percent increase in a year, and a 15 percent increase since 2016. The Statista data also revealed that the largest club in Premier League hit more than €673 million in revenue in the season 2018/2019, with around 43 percent of that value generated through the sponsorship, retail, merchandising, apparel, and product licensing. Moreover, the club recorded a profit of over €20.7 million for its 2019 fiscal year.
The 2020/2021 Premier League season kicked Saturday, September 12 in what is shaping up to be an exciting season as the league tries to fit in a full season despite a delay due to the COVID-19 pandemic. The pandemic also made many clubs face tough financial decisions as the economic repercussions of the virus began to take hold.
The English Premier League, arguably the most followed football league in the world has helped to shape the global league and football which have seen an influx of money into the sport in the last thirty years that has turned it to a very lucrative industry. However, due to the nature of sporting events being very conducive to the spread of COVID-19, spectator sports in its different forms are significantly affected by the pandemic.
The study which considered the financial effect of the pandemic on premier league teams, data from TV revenue, matchday revenue, Commercial/Retail revenue concluded that Manchester United are set to lose out the most from the pandemic with an estimated loss of £116.4 million while Norwich, which is at the bottom of the list, is set to lose £19.5 million.
Liverpool is set to lose as much as £55.2 million from TV rights which is the highest out of all Premier League clubs while Norwich that sits at the bottom of this list as well only projected to lose 14.6 million pounds. However, a closer study of the numbers indicates that the effect of the loss of income from TV Rights will affect ‘smaller clubs’ more so than the bigger clubs.
Bigger clubs have other revenue streams that they can really on while TV rights are the main source of revenue for smaller clubs. For instance, Norwich’s income loss from TV rights makes up 75 percent of their total income loss while Manchester United’s income loss from TV rights only makes up 41 percent of their total income loss.
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