Liverpool could be set for an eight per cent drop in their operating revenue, a new report has suggested.
The Reds are set to publish their latest set of financial accounts in the coming months, accounts that will provide one of the clearest pictures yet of how the COVID-19 pandemic has hit the football economy.
Already the financial pain of the pandemic has been demonstrated in heavy losses for Manchester United, Tottenham Hotspur, Everton, Inter Milan, Roma, Juventus, Lyon and Borussia Dortmund in their published accounts, while Spanish giants Barcelona and Real Madrid both had to introduce hefty wage cuts to staff and players in a bid to alleviate some of the financial pressures that COVID placed upon them.
The lack of matchday income for clubs has been the obvious hit, with full stadiums of fans still seeming like a long way off as infection rates and deaths rise once again, and the vaccination rollout likely to take some months still to implement.
Accounting firm KPMG have compiled a detailed analysis of the impact of coronavirus on six of European football’s domestic champions from the 2019/20 campaign.
The report looked at Liverpool, Real Madrid, Paris Saint Germain, Bayern Munich, Juventus and Porto, with some of those clubs having already submitted their financial statements for the current year.
For those that hadn’t yet published, KPMG used figures obtained from the management of clubs.
In terms of operating profit, the income that the football club has less the day-to-day running costs of the business, Liverpool’s drop was more modest than some.
According to the report, the Reds saw a drop of eight percent, a sum of €47.6m (£42.1m) from a total of €557m (£502m). That figure was made up through €82.5m matchday revenue, €231.9 broadcasting revenue and €242.6m commercial and other revenue streams.
The hardest hit from the six analysed were Porto’s 50 percent drop, while PSG saw a 15 per cent drop and Italian champions Juventus suffered a 13 per cent slump.
At Real Madrid, PSG, Juventus and Bayern Munich it was the matchday income that saw the biggest drop, but for Liverpool and Porto the biggest hit came from a decrease in broadcasting rights. This drop was attributed in both cases to the poorer Champions League performance of both clubs compared to the 2018/19 season, when Liverpool were the winners. Last season the Reds were beaten in the last 16 by Atletico Madrid and Porto failed to make the group stages of the competition.
Andrea Sartori, KPMG’s Global Head of Sports said: “While recent pre-COVID-19 seasons demonstrated constant and stable growth for almost all the champions of Europe’s top leagues, the past season has been distressing for all, albeit to various extents.
“The coronavirus crisis has questioned the financial sustainability of the football ecosystem as a whole and further exposed its fragility.
Even prior to the…
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