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Premier League clubs report revenue loss of $1.3 billion

Covid Football

Premier League clubs generated $8.3 billion of revenue during the 2019/20 financial year, according to analysis from Deloitte’s Sports Business Group, which is a decline of 13% compared to 2018/19 ($9.6 billion).

2019/20 marks the first season that Premier League clubs have cumulatively reported a year-on-year fall in revenue.

Under normal circumstances, clubs have a financial year-end that aligns with their domestic season. However, the disruption to the 2019/20 football season because of the pandemic enforced shutdown has resulted in club revenues for that season being spread across the two financial years ending in the summers of 2020 and 2021.

Dan Jones, partner and head of the Sports Business Group at Deloitte, commented:

“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.”

The analysis reveals that Premier League clubs’ aggregate wages-to-revenue ratio increased to a record high of 72% in 2019/20, as a result of the decrease in year-on-year revenue.

With the decrease in revenue and a general inability to reduce costs that clubs had committed to incur, Premier League clubs made a collective pre-tax loss of almost $1.84bn, (2018/19: $0.4bn loss) which is the largest pre-tax loss in Premier League history.

“The full financial impact of the pandemic on the Premier League will depend on the timing of the return of fans to stadia in significant numbers and the ability of clubs to maintain and develop their commercial relationships, in particular at a time when many other industries are suffering,” Jones added.

“Matchday operations are a cornerstone of a club’s business model and fans’ absence will be more fully reflected in the financial results of the 2020/21 financial year, covering a larger period of the pandemic.

“Nonetheless, and with the recent announcement of a renewal of the Premier League’s domestic broadcast rights on similar terms to those currently in place, once fans are able to return in full, hopefully during the 2021/22 season, Premier League clubs have the potential to again return to record revenue levels.”

Labor set to deliver infrastructure upgrades to Northern NSW Football clubs

NNSWF

Northern NSW Football (NNSWF) is set to welcome nine promised infrastructure upgrades from the Labor Government following the party’s win at the Federal election.

The commitments are a result of NNSWF’s strategy to lobby Federal MPs as part of its key strategic priority of Places to Play, as well as the FIFA Women’s World Cup 2023 Legacy plan.

The commitments are from Labor candidates standing for election on Saturday.

“We thank sitting MPs and candidates who have made pledges to support football within their electorate,” NNSWF CEO David Eland said in a statement via the organisation.

“One of our priorities as part of our 2021-2023 Strategic Plan is ‘Places to Play’. So these commitments are not a coincidence. They are reflective of the work NNSWF and Member Zone staff have done over a number of years.”

NNSWF launched a comprehensive Facilities Audit in 2018 to capture data on more than 200 football facilities across northern NSW. A priority projects list was established in conjunction with clubs to advocate with all levels of government.

The NSW Football Infrastructure Strategy was then released in 2020. From this, NNSWF developed seven Local Infrastructure Strategies consisting of data from the audit and outlined a strategic direction to cater for the increase in participation based on five pillars:

  • Planning for growth and demand
  • Improve existing venue capacity
  • Inclusive football facilities
  • Homes of football
  • Partnerships and investment

“Football is the largest team participation sport in NSW with our current rapid growth certain to continue,” Eland continued.

“We needed to plan for the future and identify the needs of our sport for those that currently play and for those that want to but can’t.

“We identified at the time that there could have been as many as 30,000 additional players across NSW that could have played in 2019 if they had access to a football facility.

“What we are doing is ensuring that football has the infrastructure and facilities to continue to grow into the future and players will have access to quality places to play wherever they are in our region.”

The clubs set to receive much-needed infrastructure upgrades following Labor’s election win are:

  • Wallsend FC, Wallsend DDC ($286,000 for ground improvements, including irrigation on both fields)
  • Newcastle Olympic FC ($625,000 for amenity improvements and a new grandstand)
  • Maitland FC ($2,000,000 to upgrade lighting and to develop new amenities and a function centre)
  • Valentine FC ($184,000 for amenities upgrades)
  • Dudley United Senior FC ($320,000 for gender neutral amenities upgrade, disability access and toilets)
  • Garden Suburbs FC ($400,000 for female friendly changerooms)
  • Singleton Strikers FC (3,000,000 for upgrades to three full fields, multi-use court, upgraded amenities and carpark)
  • Edgeworth FC ($65,000 for fencing, completion of lighting project and completion of dish drainage)
  • Thornton JFC ($150,000 for lighting upgrade to two fields and new lighting to MiniRoos area)

This week’s football funding news ahead of election

Australia’s Federal election commences on Saturday, with the final rounds of funding and promises rolled out across the week.

Both major parties once again made their commitments across various states, both on and off the pitch, and more broadly for issues surrounding community and national sport.

Tasmania and New South Wales will both benefit further from the Morrison Government if re-elected, while other communities and broadcasters were given promises by Labor.

Labor

The Labor Party will commit $2.5M to upgrade the Kariong Sporting Precinct if it wins government on May 21. Based in the NSW suburb of Kariong – just west of Gosford – the upgrades will aim to make the precinct more inclusive.

While the Precinct is host to many different sporting clubs and organisations, it is also home to Kariong United FC.

Announced by Candidate for Robertson, Dr Gordon Reid, and Member for Gosford, Liesl Tesch, it is an addition to the state-wide focus on investing in female football.

While not funding, Labor leader Anthony Albanese pledged to support local TV and free sporting events, including football events, if elected.

The Labor Party will review anti-siphoning laws if elected to ensure that major sporting events are available for free instead of behind paywalls of streaming services.

Liberal

The Liberal Party announced on Tuesday that it will commit $3.5 million towards the redevelopment of Valley Road if elected after May 21.

Announced by Member for Braddon, Gavin Pearce, the funding would allow Devonport Strikers to complete Stage One of its redevelopment of Valley Road, including increased seating, lighting and pitch upgrades, as well as refurbished clubroom and kitchen facilities.

The funding would be in addition to the State Government funding committed to Valley Road to give the venue the best chance of being selected to host 2023 FIFA Women’s World Cup basecamps.

Meanwhile in NSW, it was announced on Monday that $3 million would go to upgrading sporting facilities at Harrie Dening Football Centre and Prince Edward Park in Kareela

The proposed funding will help deliver an equaliser for the Sutherland Shire football community in a state-wide commitment to female football.

The equaliser campaign is designed to support grassroots for clubs to deliver new and improved female friendly facilities.

The funding to Prince Edward Park will go towards raising the oval, sports field lighting, improved car park and playground and fitness space renewals.

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