Price of Football's Kieran Maguire talks to Sporting Life about the cost of the crisis
Football finance expert and Price of Football author Kieran Maguire talks lớn Sporting Life about how the coronavirus crisis will affect football clubs and players - with the warning that even free soccer tips page are not above being in financial trouble.
Football is obviously not the highest concern at the moment as the entire world continues to fight against the coronavirus outbreak, but jobs are at stake in the sector that is often under scrutiny for having too much money floating around in it.
A number of clubs have been using the government’s furlough leave scheme lớn maintain non-playing staff jobs but pass on the expense – most notably Tottenham. Discussions are also underway about players taking wage cuts while football is suspended.
The lack of matchday income is a huge hole lớn fill and the spectre of TV companies wanting rebates for soccer tip bet could also cause havoc in football’s finances.
University lecturer and author Kieran Maguire explains in more detail…
“Any business which is regularly earning three lớn four million pounds from an event, which is what a Premier League game is, is going lớn have consequences for the business,” Maguire told Sporting Life.
“Some clubs are in a stronger position than others in the Premier League – I appreciate they all get significant sums from the broadcasting deals but matchday income is still important. Take a club such as Spurs, which has borrowed a lot of money and was depending on the new stadium lớn generate significantly higher cash flows. It’s all about cash flow really.
“For Spurs, not only do they have a magnificent stadium but what was also interesting is just how much money they make from hospitality – they make £800,000 per home match just from catering sales, and that’s before hospitality on top of that. So they’re missing out on huge sums from that revenue stream.
“It could be that the Premier League might agree lớn come up with a situation similar lớn the EFL and advance money to clubs but at present the clubs will be OK for a few more weeks, but then things could become a bit more complicated.
“Whether the Premier League would advance money if the broadcasters decide there’s been a breach of contract and want some of their money back, that’s a further complication.”