COVID-19: Premier League facing £1bn hit in revenue

The English Premier League faces an estimated £1 billion pound loss in revenue due to the coronavirus crisis, according to financial services firm Deloitte.

Due to coronavirus pandemic, the league has been suspended since mid-March, resulting to three months of no action on the pitch that will weigh heavily on revenues for the 2019/2020 financial year.

Dan Jones, of Deloitte, expects “significant revenue reduction and operating losses” in European football.

He said: “The success of each league’s return, and the strength of each one’s relationships with broadcasters and commercial partners, will have a potentially significant and lasting impact on the financial strength of clubs and leagues.”

Deloitte says £500m of the reduction for Premier League clubs – in rebates to broadcasters and a loss of matchday revenue – will be “permanently lost”, with the remainder “deferred” until 2020-21 if this season and next are completed.

Despite a projected rapid recovery in finances, the Covid-19 pandemic could force U.K. clubs to reassess cost controls and focus on long-term stability, according to Jones.

“The decisions taken now will determine if the 2019/20 season is seen in future as the end of a golden age or the start of a better, stronger new era,” he said.

The league is scheduled to restart on June 17 with games to be broadcast live in the UK by Sky Sports, BT Sport, BBC Sport and Amazon Prime.

With revenue of £5.2bn in 2018/2019, the Premier League is by far Europe’s richest football competition.