Published 19:38 IST, May 7th 2020
Bundesliga €750m financial crisis mitigated as other European leagues brace for big losses
The Bundesliga return is expected to reduce the financial crisis in the German top flight but England, Italy and Spain are in line to face massive setbacks.
The Bundesliga return is set for May 16 as the German top flight plans to mitigate its financial losses following the coronavirus crisis in Germany. Even though the Bundesliga return will take place behind closed doors, clubs are bound to lose out on matchday revenue. It is reported that the top two leagues in Germany were set to lose out on a staggering €750 million if the season was cancelled. Ligue 1 has already cancelled its top division while Serie A, LaLiga and Premier League are expecting heavy losses due to the crisis.
Bundesliga return: Financial tightrope
Out of 34 teams in the top two Bundesliga divisions, 28 clubs recorded a profit in the 2018-19 season. However, according to a report from DW, the top two leagues were facing a loss of €750 million if the Bundesliga return was scrapped. The report also claimed that the media revenue accounted for 36 percent of clubs' total revenue, followed by advertising (21 percent) and ticket sales (13 percent). This amounts to close to €2.8 billion, or 70 percent of the total income that revolves purely around matchday revenue. The Bundesliga still has nine matchdays remaining until the end of the season, cancellation of which would have plunged the clubs into financial turmoil
The ability for the Bundesliga to pay its players and coaches their wages relies heavily on the TV income. With no football games being broadcast it is reported that players have been requested to take wage cuts. Although the Bundesliga return will alleviate the losses of the TV income, it remains to be seen when fans will be allowed inside stadiums to boost matchday revenue.
Premier League finances to receive setback of over €1.1bn (£1bn)
While there are numerous advantages to being the most-watched league in the world, the coronavirus outbreak came as a bane for England's top tier. The Premier league finances are set to take a massive hit, arguably the biggest in Europe's top five leagues. According to reports from Sportmail, the coronavirus crisis in the UK has led to major setbacks in the English top division as the Premier League finances are expected to take a €1.1 billion (£1 billion) hit if the season is cancelled. This exceeds the combined losses suffered by all clubs in the top two tiers in the Bundesliga. The Premier League TV rights deal itself amounts up to €871 million (£762 million) and the English top flight is projected to suffer the most bitter repercussions of the coronavirus crisis in Europe.
Ligue 1 finances: Ligue 1 cancellation to set French top flight back by €225 million
Ligue 1 has already been cancelled due to the situation in France with PSG being awarded the title. However, Ligue 1 finances have taken a relatively smaller hit in comparison to the other top European Leagues. According to Calcio e Finanza, the calculations suggest that the Ligue 1 is set to lose up to €225 million for the cancellation of the French top flight. BeIN Sports immediately pulled the plug on TV income once the season was suspended and clubs will have to find a way to survive without the revenue of matchday tickets as well.
Serie A finances and LaLiga finances
According to reports from Marca, Italian football earns €150 million from sponsorships each year. The Serie A TV rights deal is estimated to be around €450 million with matchday revenue at €100 million. With the return of the Serie A in doubt, there is a possibility that the total Serie A losses could stack up to €650 million.
Reports from Statista claim that LaLiga's financial losses could amount up to €610 million. The Spanish top division is set to lose out on €490 million through its broadcasting rights alone. After Ligue1, it is possible that the LaLiga will be second in line for the least damage done by coronavirus in Europe's top five leagues.
Updated 19:38 IST, May 7th 2020