Premier League golf equipment are set to face a £1 billion discount of their 2019-20 revenues because of the coronavirus pandemic, analysis from monetary agency Deloitte has discovered.
England’s top-flight, which is ready to renew behind closed doorways on June 17, faces a major monetary problem and working losses after golf equipment posted a report £5bn in revenues final season.
– Stream ESPN FC Each day on ESPN+ (U.S. solely)
The monetary agency’s analysis confirmed that Europe’s 5 main top-flight leagues in England, Spain, France, Italy and Germany generated a report £15bn in income final season, however that the interruptions attributable to the virus would vastly affect this 12 months’s revenues.
Deloitte stated that half of the Premier League’s discount in income, as a result of rebates to broadcasters and a lack of matchday income, can be “completely misplaced.” The remaining £500 million will possible be deferred, relying on the go forward of the 2021-22 season.
The agency additionally stated golf equipment ought to introduce an inner wage cap based mostly on 70% of their income to make sure their long-term future.
“You have bought 107% of income going out on wages. You’ll be able to see the issue looming,” Deloitte’s Dan Jones stated in a press release.
“A wage cap is a blunt instrument, however in case you can solely spend 70% of income on wage, and utilized that in 2018-19, you are taking £300m out of the wage invoice and wipe out the losses.”
Final month, Manchester United government vice-chairman Ed Woodward stated that the membership is going through probably the most difficult durations within the membership’s historical past due to the pandemic. The feedback got here after United’s third-quarter monetary outcomes revealed debt elevated 42.2% to £429m.