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….