PREMIER LEAGUE clubs could reportedly go BUST as the coronavirus crisis risks causing a “domino effect” of debts.
The football season has been suspended as the nation battles the ongoing epidemic.
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The intra-dealings between clubs on transfer fees could see a domino effect of financial perilCredit: Getty
And according to MailOnline, it is the £1.6BILLION owed in transfer fees that could see some clubs go to the wall.
Clubs owe each other “millions in transfer fees”, and one clubs’ failure to pay up could cause a “domino effect”.
If fees are not received, clubs could then subsequently default on bank loans leading to financial ruin.
And the overall fear is that there was simply no way of predicting how a global pandemic could affect sport.
Clubs have been left relying on TV money to cover player salaries – but the prospect of those payments being deferred is now a very real possibility.
TV rights across the Premier League are worth £2.45bn. If the season gets cancelled, which is yet to be ruled out, clubs could be asked to repay £762m.
John Purcell of finance experts Vysable said: “No one could have foreseen an event as catastrophic as Covid-19, but the clubs had already placed themselves in the worst possible position.
“They are almost wholly reliant on Premier League TV income, it’s about 88 per cent of their total income.”
Premier League supremo Richard Masters has admitted top-flight clubs stand to lose £1bn from the coronavirus crisis – and defended them using taxpayers’ money to bail them out.
Chief executive Masters says there is a real danger some teams could even go bust if the lockdown forces the cancellation of the current season in a frank admission the English game is in financial crisis.
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Liverpool bowed to public pressure by reversing their decision to furlough half their non-playing staff but Tottenham, Newcastle, Bournemouth and Norwich have turned to the state for help.
And Masters said: “We face a £1billion loss, at least, if we fail to complete season 2019/20 and further losses going forward if the seriousness of the pandemic deepens and extends into the future.
“Ultimately, the very heavy losses that we face will have to be dealt with or else clubs and other enterprises who depend on football for income will go out of business.
“We do not say this lightly, or to justify clubs’ decisions; it is a very real threat.”
SunSport reported how the majority of Premier League clubs were facing huge losses BEFORE the coronavirus crisis.
Of the 20 clubs in England’s top flight, TWELVE went into the 2019/20 season in the red.
Everton and Chelsea fans won’t like looking at the stats – the Toffees are the hardest hit with a loss of £107m with Roman Abramovich footing a £101.8m deficit at Stamford Bridge.
As a result of the coronavirus, you can add in losses of £91m for Chelsea and £42.6m for Everton for the current suspension.
FA chairman Greg Clarke fears the sport is in danger of being “decimated” by the crisis.
SunSport called on Clarke to broker a peace deal after players and clubs failed to find an agreement over wage cuts.
That followed a dramatic weekend when the Prem demanded PFA members agree a 30 per cent wage deferral but the bid was rejected.
Club rely on TV money – which could be deferred if the season is cancelledCredit: Getty
Premier League ‘to release statement ending season’ due to coronavirus uncertainty, claims Serie A chief Marino
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Source: Soccer - thesun.co.uk
