There have been many doomsday forecasts about the amount of football clubs that could be in dire financial straihts if this suspension of this season continues for the forseeable future, and it looks like Arsenal could be one of the biggest losers it the season is declared null and void due to the coronavirus pandemic.
This estimate of 100m GBP shortfall comes from a statement by the Burnley chairman Mike Garlick, who has issued a dire warning in the official Burnley website, outlining the problems that all clubs are facing, but Burnley in particular.
Here is the statement in full….
Further to the Premier League statement released post the Premier League Shareholders meeting held on Friday 3rd April, Burnley FC is keen to be transparent with supporters, staff and stakeholders and is therefore able to confirm that due to the continued suspension of Premier League games this presents some significant challenges for the football club.
Burnley FC are set to lose around £5 million in lost revenue from the remaining home games which in the event that the season finishes would be unlikely to be recouped owing to the likely prospect of these fixtures being played behind closed doors.
In addition, the Clarets face missing out cash payments from the Premier League of up to £45 million in broadcasting revenue and other items if the season is not finished. It is believed that other clubs could be looking at up to a £100m GBP shortfall.
Commenting on this Burnley FC Chairman, Mike Garlick said: “It’s a completely unprecedented situation that we and other Premier League Clubs face and which we could not have foreseen in anyway only just a few weeks ago.
“It’s now not just about Burnley or any other individual club anymore, it’s about the whole football ecosystem from the Premier League downwards and all the other businesses and communities that feed from that ecosystem.
“As a club, as fans, as staff members and as a town we are all in this together and I’m sure we can get through this by sticking together and helping each other in every way possible in these tough times.
“We all need to do our bit, however small, together as One Club.”
So, Burnley are expecting to lose 50million, so why do I think Arsenal will be closer to 100m GBP? For starters, Arsenal’s season tickets are more than double the cost of Burnley’s and are the most expensive in the world right now, and the Gunners are in the Top Five of beneficiaries of TV and Broadcasting revenue (40million more than Burnley last season).
So as Arsenal reported a 27m loss in the last financial figures, a further loss of 100million from this crisis could put us in a very fragile state, especially as regards bringing in new players.
But there is hope on the horizon, as outlined in the previous post about the new August deadline, but if we don’t manage to get the virus under control quickly enough, it could have dire consequences for most Premier clubs, and not all of them are run as sensibly as Burnley and Arsenal….
A well thought out and constructed article – and for Admin Pat only, you will note PAT, that I often praise well constructed and thought through articles and simply wish there were far more of THIS quality and far fewer from Patrick and his ilk – which hits the financial nail squarely on the head.
I common with all the real thinkers on here – and fortunately there are many of us, usually, though not entirely , older fans who have seen much of life – I have deeply and thoroughly considered the full range of possible outcomes. I speak entirely for myself and others will have their own thoughts.
Firstly, it is impossible to say exactly when we can resume football BUT it is possible to accurately predict a severe delay. This means, to me, that until an effective vaccine is found and widely used, the prospect of a close contact sport, with or without crowds allowed in to watch, being resumed as before, is remote. I do not envisage any responsible government allowing it. It is still being played in Belarus right now and that country is irresponsibly governed and the consequences will be and are being felt already.
The prospect of such a vaccine being found, found to be safe and widely used worldwide is a long way off yet. CERTAINLY NOT WEEKS AND NOT BY AUGUST . In fact ,imo, not in this calendar year either. That is alarming but realistic, though I realise that most will think me far too pessimistic, as is anyones right. But as usual I have my own opinion and will always give it no matter how gloomy or how optimistic.
For Arsenal, some way down the track as yet, I see a POSSIBLE way out of Kroenkes dreadful ownership, as Kroenke has his huge fortune invested largely in sports clubs , mostly in USA, which is being run into the ground by a brainless and hubristic imbecile. It actually suits Arsenal from a selfish point of view, that Trump is President, as he is doing his simple minded best to make the disease far worse than would a normal and intelligent President and thus causing far more financial damage to Kroenke than would, say, another Obama type man or woman.
The financial hit he will take MAY well force him to consider selling up, possibly to Dangote, though THAT remains uncertain and I personally think unlikely, as Dangote is deeply involved with his Nigerian refinery, which will also be financially affected.
Secondly, the real money in football lies with those multi billionaire owners, not with the clubs themselves which will be in severe peril quite soon now. Even top level clubs like Burnley, which do not have a billionaire owner , unlike ourselves, and many other mostly Championship clubs too. Such famous football names as Forest, Derby, Preston and that like will be in peril of going under and a number will go under.
When we finally resume football in Britain the whole way the Prem and EFL will be structured will be different from now. There will be fewer clubs. There will be far less money in the sport, mostly affecting transfer fees and players wages. None of this will directly harm us fans though and a degree of morality will be returned to the sport we love. Sky and BT Sport and other companies will STILL sponsor the game but at a reduced financial level, thus reducing the money available to all.
Peoples enthusiasm for sport will remain very high as ever and nothing fundamental will change that, as competition is a key part of human behaviour, so Prem grounds will still be packed.
I could write far more but no one can be sure exactly how things will finally be changed. But huge changes are for certain and in th end it COULD work out better for us fans than before this virus took hold. Fingers crossed then!
I neglected to also mention that commercial sponsorship will fall considerably too and that will further reduce the money in the sport. There will be a large number of household business names going bust, plus vastly increased unemployment and the whole conomy will pay the price. To get fans to fill the grounds and despite the fans appetite remaining strong, a possible reduction , from necessity, in ticket prices may, just MAY, be on the cards. Lets hope so!
In regards to Trump Jon, being in the States, our miserable Congress is the real problem here. They have shown themselves to be the petty politicians we feared they would be.
Opportunistic hacks who put power and politics above health and welfare. Thinking they know better than medical professionals months ago when safeguards were proposed they chose political correctness.
Oh Lord Jon fox. President of the fans of this our beloved site, I hail thee!!!
LOL…. i must agree
It will take a major miracle to finish this season.
Hypothetically, if the league was still an amateur league, it would probably have been called off by now. Either declared null and void, or with some attempted fairness, with a declared final ranking etc.
But it is finally surfacing, that the reason it isn’t called off, really is because of the financial impact. Nothing to do with the sport’s side of things.
How severe the financial losses will eventually be, is really too early to say exactly.
I am much inclined to be thinking along the lines that Jon Fox has brilliantly put forward. It would in fact be interesting, if someone have more detailed insight into Kroenke’s economic situation. As Jon points out, he is without a doubt extremely hard hit already, and it is going to get much worse by the looks of it.
If the club is set to suffer an additional £100M loss over the previous £27M loss, am afraid not signing players should be the least of our problems. We should be worrying how this club will continue surviving especially with all the leeches on mega bucks still earning their full salaries.
QD, I would not be worrying overmuch about Arsenals survival, as we have the massive benefit that only a very few other clubs have of worldwide support and that is a massive safeguard for the following reason. Despite the massive world economy downturn that is happening as we speak and which will be worsening for some considerable time to come. the multi billionaires who own much of the worlds wealth will always include some who support Arsenal and Dangote plus Usmanov are two of these. Usmanovis now elsewhere as we know but footballs worldwide following is not remotely in danger and the super big clubs will easily survive. But they will need to cut their cloth accordingly. Some smaller clubs, though still well known names, will run out of CLOTH to cut and THAT is the key difference betwen us and such as Derby, PNE and many others in that level of fame but not of world wide support.
Point two on cutting our cloth is that players salaries will reduce substantially and though the recent Prem meeting agree to only DEFER payments, that cannot possible remain the case permenantly and a permanent sizeable playr wage reduction will soon happen. When new contracts are awarded you will see this in action, mark my words. This will happen throughout the football world too.
All you really need to do is to follow the clear trail of logical thought from step one to step two and so on. Timing is of course uncertain but the main happenings ahead are crystal clear.
Paying gate money back alone will come to around £30M according to how I’ve worked it out.Not only have we got three times the amount of season ticket holders as Burnley we’re twice as expensive, then we have 5,000 in club level. There’s the loss of revenue from Sky Sports, BT, The Premier League and sponsors, that’s at least another £100M. I’m sure and I’ve always said it, it’s going to impossible to finish this season which I think must be declared sooner or later null and void and now I’m worrying about next season and If leagues up and down the country start awarding titles, promotion and relegation the legal challenges will overwhelm them. Excellent post by Jon Fox with his prophecies of the future of the game, Arsenal fans Dangote and Usmanov would be welcome to take over from Kroenke, at least there football people with a real love of the game but lets not be too hasty, the ways of the Hill-Woods are well and truly behind us.
Admin Pat, I sent you an email @justarsenal@hotmail.co.uk yesterday. I’m still waiting to get a feed back from you.