Newcastle United fans await financial results as report reveals staggering cost of Covid-19 for Premier League clubs
A new report has outlined the financial cost of the coronavirus pandemic on Premier League clubs.
Professional football went behind closed doors last year following the first national lockdown, and the pandemic has taken a huge toll on the finances of Premier League clubs, according to Deloitte’s Sports Business Group.
The combined revenues of Premier League clubs for 2019/20 fell for the first time to £4.5billion from £5.2million.
And the combined wages-to-revenue ratio for Premier League clubs rose to a record high of 72%.
Premier League clubs also recorded the largest aggregate pre-tax loss in the division’s history. The figure for 2019/20 was £1billion, up from £200million the season before.
Dan Jones, head of Deloitte’s Sports Business Group, said: “The decrease in revenue in the 2019/20 season is, unsurprisingly, down to the global economic and social disruption caused by the Covid-19 pandemic, and will continue to have a heavy impact on the 2020/21 season’s financial results, when available.
“The absence of fans, postponement of matches and rebates to broadcasters had a significant impact on the revenue clubs have been able to generate.
“Nonetheless, whilst this has been the most challenging period for all concerned in the football industry, Premier League clubs showed impressive resilience in mitigating the financial impact of the Covid-19 pandemic.
“By completing the 2019/20 season in full, live football provided a great boost to the public and valuable content for broadcasters.”
Newcastle United are yet to release their financial results for the year ending June 2020.
Steve Bruce repeatedly spoke about the financial implications of the pandemic last season. United’s head coach attempted to manage expectations ahead of this summer's transfer window last month.
“Every club will be the same,” said Bruce. “They’ll be looking at Bosmans (free agents), which are always attractive for obvious reasons.
"But I have to say to everybody, I can't see there been swathes of money anywhere in the Premier League. The discussions I've had with other managers, the situation is the same. The football world has lost millions during Covid. I can't see a load of money being spent this summer."