Prem’s Big Six face financial black hole as mega sponsorship deals dwindle during coronavirus shutdown

THE Big Six could be the victims of a sponsorship cash crisis if the worst virus fears are realised.

Liverpool, Manchester United and City, Arsenal, Chelsea and Tottenham rake in the bulk of the £3billion annual TV revenues.

Daniel Levy’s Tottenham could lose out on their sponsorship deals.Credit: PA:Press Association

Ed Woodward’s Man Utd could see their income slashedCredit: Getty Images – Getty

But they also rely on many millions of pounds of income from lucrative commercial activity — especially sponsorship.

And one senior chairman warned the situation could “come to a head very soon”.

United grossed a stunning £275million in 2019 from commercial deals, including £173m in sponsorship.

City, Liverpool and Chelsea all earned more than £180m from commercial sources, with Spurs recording £135m and the Gunners £111m.

Arsenal’s figure was the lowest of the Big Six but still a staggering £70m ahead of seventh-placed Everton.

Even stripping out matchday and training kit deals, including Premier League sleeve sponsors, United still bagged £111m in sponsorships — with City on £97m and Spurs and Chelsea neck and neck for third with contracts worth about £65m.

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But club chiefs fear this essential income could be at risk in light of the global economic slowdown caused by the virus.

And if this season is abandoned, the payback of TV money will be another financial blow.

The club chairman explained: “Everybody seems to think the Premier League is awash with revenues.

“If we have to give back the £760m of broadcast income that we expected for the last part of the season, then it’s true a lot of clubs would be hurt.

“But for the bigger clubs the worry is as much, if not more, about the impact on their other commercial activity — because we know that companies are looking at the ‘force majeure’ provisions that are in their contracts.

“In any economic downturn, promotional budgets are always the first things that are vulnerable. And that could come to a head very soon.

“If we get to the end of June and are still in the same place in terms of there being no obvious sign of football returning, there’s a real danger that the sponsors will be arguing they need relief from their obligations.

“If they haven’t got a market to sell their products to, it is hard to justify paying money for sponsorships.

“A lot of clubs are wondering what is going to happen.”

Broadcast money represents a far higher slice —­ up to 80 per cent — of total revenues for the smaller top-flight clubs such as Bournemouth, Norwich and Brighton.

So they have proportionately more to lose if next season is curtailed in an attempt to get this term finished.

Source: Soccer - thesun.co.uk