Premier League set for financial collapse as clubs' values drop by £1.8 billion: Report

The Premier League suspension has wreaked havoc on the financial aspects of clubs in English football. With clubs owing over £1.6 billion in transfer fees, the English top flight is set for a Premier League financial collapse. Analysts have claimed that the Premier League financial collapse has slashed the value of the top tier by £1.8 billion due to the coronavirus outbreak that has halted football in England for over a month. 

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Premier League suspension: Premier League pay cut

The Premier League suspension was immediately put into practice after Arsenal boss Mikel Arteta tested positive for coronavirus. With no football games being played due to the coronavirus lockdown, the Premier League suspension has caused some unprecedented financial drawbacks for top-flight clubs. Stars in the English top division have been urged to take a 'Premier League players pay cut' so that wages are distributed equally among the non-playing staff during this time of crisis. Although the Premier League players pay cut has still not been implemented, the NHS has benefitted from the 'Players Together' fund which was an incentive taken by footballers to provide financial aid to the healthcare workers during the crisis. 

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Premier League suspension: Premier League financial collapse

With no revenue incoming through the TV rights deals, sponsorships and matchday tickets due to the Premier League suspension, clubs in the top tier are facing a Premier League financial collapse. The Premier League financial collapse is estimated to be around £1.8 billion by analyst Kieran Maguire. While transfer fees in the market have risen over the past few years, clubs have taken loans to pay for their players and some in instalments.

Manchester United owe a staggering £169.3 million with Manchester City second on the list on £83.7m and Tottenham keeping pace on £83.4m in dues. The figures do not ease at the bottom of the table as relegation-threatened West Ham, Bournemouth and Watford have a collective transfer debt of £170 million. These figures of debt are mainly due to the Premier League suspension and players might not be worth as much as they were at the time of purchase, with the total value of debt coming up to £1.6bn in transfer fees, with around £900 million owed to clubs overseas.

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Coronavirus in UK: Premier League players pay cut

The Premier League players pay cut was an offer suggested by the respective clubs in the top flight. The clubs proposed that players' wages would be cut by 30 percent amid the coronavirus in UK situation. The coronavirus in the UK has worsened as Worldometer has reported over 12,107 deaths so far.

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