Sports Pundit
Football

Is Football Facing a Financial Crisis?

Football facing financial crisis
Football facing financial crisis

The authorities in both England and Italy have been warned that professional football in their respective countries faces an existential financial crisis because of the Covid-19 pandemic.

In the UK a group of prominent figures in the game have written to the Culture Secretary, Oliver Dowden, warning him that the country’s football pyramid is in danger of collapse, following the governments decision to scrap the planned return of fans to stadiums.

EFL Chairman Rick Parry, meanwhile, has warned that time is running out, although the Premier League is set to announce a rescue package to help lower league teams.

However, it may simply not be enough. It is estimated that the Football League, three divisions below the Premier League, is set to lose 200 million (US $ 260 million) if the whole of this season is played behind closed doors.

The Premier League clubs are not immune. Every match that Manchester United, one of the richest clubs in the world, plays at Old Trafford in front of empty stands, costs them four million quid in lost revenue.

The situation is no better in Italy, with Serie A warning of losses of up to 500 million euros (US $585 million) this season. A limited number of fans of one thousand per game have been allowed back, but, with the number of coronavirus cases again on the rise in the country, the Italian government is not prepared to allow more.

The Chief Executive of Serie A, Luigi De Siervo, has warned of the potential of a complete collapse of professional football in the country, due to a loss of matchday income and reduced sponsorship.

Italy is less dependent than many countries on matchday revenues, with Serie A clubs getting most of their money from the sale of TV rights. But this is not as lucrative as they once were. Advertising revenues are falling across the world because of the pandemic, meaning that broadcasters are no longer willing, or able, to pay the same for sporting rights.