Premier League clubs set for £1B in revenue losses due to coronavirus
Premier League clubs are set to face revenue reductions up to £1 billion for the 2019-20 season due to the coronavirus pandemic, according to a study by financial firm Deloitte, per BBC Sport.
England's top flight returns behind closed doors on June 17 from a three-month hiatus and is facing significant losses a year after revenues across the league topped £5 billion for the first time.
Deloitte expects "significant revenue reduction and operating losses" to include a £500-million forfeiture due to interrupted broadcast agreements and the absence of matchday revenue that's now "permanently lost." The firm's data forecasts the remaining £500 million will be deferred to 2020-21 if the current season and the next one are completed.
Additionally, clubs in the Football League could incur massive losses as player wages dominate expenditures.
Deloitte's Dan Jones recommends Championship clubs impose a salary cap based on a 70% portion of revenues to ensure the financial health of the respective outfits. "You've got 107% of revenue going out on wages. You can see the problem looming," Jones said.
"A salary cap is a blunt instrument, but if you can only spend 70% of revenue on salary, and applied that in 2018-19, you take £300 million out of the wage bill and wipe out the losses," Jones added.
Last month, Manchester United claimed £28 million in losses due to the pandemic, a figure that's expected to increase.