The epidemic and the resulting health crisis will cost European football clubs more than € 8 billion over two seasons, a sharp setback after 20 years of uninterrupted growth. This is indicated by the annual UEFA report (the twelfth edition of The European Club Footballing Landscape) on the state of the movement. According to the report, however, 120 teams are “at risk of survival” due to financial difficulties, also due to an increase in players’ salaries, now paid “more than business bankers”.
European loss
UEFA’s conclusion is that the epidemic has not spared any team, depriving the entire region of “at least” 10% of expected revenue for 2019-20 and 2020-21. According to UEFA estimates, in the two seasons dealing with the health crisis, lost revenues amounted to 8.7 billion for the 55 European leagues, of which 711 were 7.2 billion for the most important clubs and 1.5 billion for the younger ones. The estimate is based on previously published club accounts, as well as by far the most accurate indication of the impact of the crisis on football’s renegotiation and another set of criteria and on football. Last autumn, FIFA indicated that the epidemic had threatened to reduce the entire football economy to $ 14 billion for 211 unions, but that figure has never been expanded. The European Club Association, for its part, estimated lost earnings of € 4 billion for European clubs in 2019–2020 and 2020–2021, but last December its former president, Andrea Agnelli, Spoke of great influence in the range between 6.5 and 8.5 billion euros.
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Stadium and TV rights
According to UEFA, the closure of the stadium was the first to weigh in, which reduced ticket revenue for the 711 elite teams between 3.6 and 4 billion euros in two years and, above all, still shrouded in uncertainty, in the full stadium. Return. Commercial revenue is then characterized as a decrease of EUR 2.4–2.7 billion, while TV rights will be cut by 1.2–1.4 billion in two seasons and negotiations are already underway to reduce them to 700 million. Euro and five main leagues after 2021 for UEFA broadcasters. With a 30% drop in global revenue, the most affected clubs are the French, along with the Scottish clubs.
Growth block
The crisis has disrupted two golden decades for European football, which recorded average revenue growth of 7.2% per year since 1999, up to cumulative revenue of 23 billion euros for the 611 teams analyzed. From the studio, led by English clubs. In the two decades, however, salaries have also increased, which have come to absorb 60% of revenue, a portion “significantly higher than any other sector, including investment banks,” UEFA observes. The players have made a small effort in the event of an epidemic by accepting pay cuts. In total, the club managed to save two billion euros, of which one billion was for two seasons’ pay. In relation to cash flow, a major issue given the high level of debt in the sector, UEFA expects about 120 clubs to be at “existential risk”, while others may resort to new loans or appeal to owners of their losses. Will make up for
Convention for the future of football
Therefore UEFA has announced to begin an important consultation process in the coming months to bring all the stakeholders of European football together and strengthen the future of football for the benefit of all. In the coming months, the Conference on the Future of European Football (Convention) will bring together representatives from national football associations, leagues, clubs, players, coaches, fans and agents to discuss long-term political and governance reforms. Uefa along with its chief negotiators wants to recover European football and lay the foundation for a sustainable and inclusive future. The move underscores UEFA’s determination to find long-term solutions that protect the European sports model based on values, solidarity and openness. The Convention’s stakeholder consultation process will ensure that Europe’s collective will and determination have a tangible impact on the future of football and its management.
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