Audit and Business Advisory Partner, Andy Turner commented on a recent article published by Accountancy Daily regarding COVID-19: football clubs fight to keep going as grounds remain closed.
Football clubs are coming under increasing pressure to cut top players’ multimillion pound wages as support staff at clubs are put on the government’s 80% furlough scheme, and EFL clubs are already struggling to pay March salaries
Andy said “Many football clubs in the lower divisions have operated with a very tight cashflow often on a “hand to mouth” basis.
‘Match day revenue is very important to these clubs who don’t necessarily have owners with deep pockets to keep them going or the television money that helps fund some of the bigger clubs.
‘We will definitely see some of the smaller clubs struggle for survival.
‘At the other end of the scale, in the Premier League, many clubs have significant player payrolls that are dependent upon the cash from the television companies. It is currently uncertain that if the season ends without completion how this will affect the contractual position with the television companies.
‘If television revenue streams are significantly lower this could affect the ability of some of the bigger clubs to continue to pay their players at their contracted rates. This could also result in an interesting challenge for football.’
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