European football is ‘being squeezed’ … losses that exceed expectations

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From the first day when football activity stopped in the world, international press and stock exchanges began to formulate reports on the expected losses resulting from this suspension, which will not differentiate between one league or another or a club and another. Of course, the hardest hit will be the most followed league in the world, in this case the English Premier League. A while ago, the English newspaper “Daily Star” confirmed that the material football losses in Europe reached more than 4 billion euros, equivalent to 3.52 million pounds, due to the interruption caused by the spread of the Corona virus. According to reports, canceling the season will cause these European federations to lose more than 4.1 billion euros, with the biggest loss for the English league to be over 1.28 billion euros.In light of the interruption of matches and the lack of their revenues, in addition to the loss of television broadcasting revenues, especially in the absence of the completion of the season, England clubs will face additional losses estimated at 1.25 billion euros.
While the returns of the audience in the stands are not the primary revenue for the clubs, the proceeds of television broadcasting are considered the main “gutter” to get the money. After the development of football in recent years – specifically since the beginning of the new millennium – this sector has become a huge industry, linked to marketing, selling, buying and betting … TV channels are racing every year to win exclusive rights, and for this, hundreds of millions of dollars are paid to clubs on the one hand, and federations Patriotism, on the other hand, because it realizes that its monopoly over a league such as the English or Spanish League, for example, will return it with huge profits that reach billions of euros. In light of the interruption period, the losses of the English Premier League or English football in general may reach 180 million euros every week in various grades, due to the absence of broadcasting revenues, commercial sales and match days profits in the stadiums.
These losses differ from one league to another, as France’s losses are less than England or Spain, because the public’s interest in the French League is less, and therefore the returns are less.

Physical football losses in Europe amounted to more than 4 billion euros

League and league losses automatically withdraw from clubs and players. In this context, one of the British financial experts assured that the value of players in the European market will decrease by about 3 billion euros, and therefore we will not see today – at least in the next two markets – transfers such as previously occurring and exceeding 100 million euros in many cases.
According to the British Daily Star also, in the 2018-2019 season, the top 20 clubs in Europe achieved revenues amounting to 9.3 billion euros, and the players’ transfers contributed significantly and mainly to this amount, but this period will be completely different due to the decline in the value of the players due to the moratorium. In addition, the clubs will discuss contracts that were previously concluded and should be implemented during the coming summer, in order to make amendments to some of them, and may also cancel them.
So it is a transitional stage in which football lives in the world, and it will entail many things, especially at the club level, that will take exceptional measures regarding the imaginary salaries of some players, in addition to new contracts, without forgetting the sponsorship contracts that were signed with some giant companies.





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