The health crisis could cost European soccer clubs 8.7 billion euros ($ 10.635 million) in two seasons, a brutal slowdown after more than 20 years of uninterrupted growth, UEFA revealed in a report published on Friday.
By describing a sector that has seen its income paralyzed, this report also clarifies the brief adventure of the Superliga, a failed project of a private tournament a priori very lucrative and that almost imploded European football in April.
UEFA confirms that the 12 dissident clubs, which for the moment have resigned from this project, have been deprived, “at least” of 10% of their expected income in the 2019-2020 and 2020-2021 seasons.
In these two courses, the European body estimates the accumulated losses of the clubs in its 55 national championships at 8,700 million euros, of which 7,200 will be stopped by the 711 most important clubs and 1,500 the rest.
UEFA launched this Friday a consultation with “federations, leagues, clubs, players, coaches and agents” that should end in a series of reforms to promote “the recovery” of European football and “strengthen” its mechanisms for redistribution of income.
One of the main points is the reform of the ‘Financial Fair Play’, a rule introduced in 2010 that prohibits clubs from spending more than they enter, but whose application is fraught with difficulties.
– The Mediapro clash –
Integrating all the figures already published, as well as the renegotiations of television rights and a series of parameters, this 112-page estimate is by far the most accurate on the economic impact of covid in the world of professional football.
At the end of last year, FIFA had estimated that the pandemic could affect “the entire soccer economy” with losses of 14,000 million dollars for its 211 member associations, although it later never detailed that number.
The European Club Union (ECA) had, for its part, calculated the losses for the big European clubs in the 2019-2020 and 2020-2021 seasons at 4,000 million euros (4.89 billion dollars), before its president Andrea Agnelli increased in December the amount at a range of between 6,500 and 8,500 million euros.
The lack of public in stadiums has largely weighed on club economies, UEFA explains, concentrating on the 711 elite clubs: losses from box office revenues could amount to between € 3.6 billion and € 4 billion. in two years. And without knowing yet when the stadiums will be able to fill up again.
Commercial revenues are expected to decline from € 2,400 to € 2,700 million, while television rights losses will be between € 1,200 to 1,400 million over two seasons, with downward renegotiations underway “of € 700 million” plus beyond 2021 for the broadcasters of UEFA and the five major European championships.
The impact has been particularly violent in France as a result of Mediapro’s withdrawal as a broadcaster of Ligue 1 matches, whose clubs have lost “around 30% of their global revenues.” They are the most affected by the crisis along with Scottish clubs.
– Wage inertia –
The health crisis put an end to two golden decades, with an average growth of 8.2% per year since 1999, reaching in 2019 global revenues of 23,000 million euros (28,000 million dollars) for the 711 main European clubs, with the English in the lead.
But during that time, salaries also grew to account for more than 60% of club income, a ratio “significantly higher than any other industry,” according to UEFA, “including investment banking” and its bonus-covered brokers. .
And footballers, who take advantage of the sports rivalry of the clubs to reinforce their position, have hardly contributed during the pandemic, since the teams have barely reduced the wage bill by 1 billion in two years.
From the point of view of the treasury, a key point given the high level of indebtedness of the sector, UEFA foresees an “existential risk” for around 120 clubs, while the others will reduce losses with new credits or with a greater contribution of their owners. AFP (HN)