Professional Football Club Revenues, Direct Investment and COVID-19

It remains needless to say that COVID-19 has had a profound detrimental effect on the world’s economy. The football industry has not been immune to the worldwide economic downturn. The suspension and cancellation of competitions and the necessity to play matches behind closed doors has negatively affected industry revenues.

Professional Football Clubs and COVID-19

Professional football clubs are particularly vulnerable to the economic effects of COVID-19. The main expense of a professional football club are player expenses in the form of salaries/wages and/or transfer fees. Although the introduction of club licensing and financial fair play regulations have instilled some financial responsibility at a club level, a club applying for a UEFA competition license can still spend up to its break-even point with an acceptable deviation of EUR 5 million per year.

The fact of the matter is that clubs will often budget up to this limit, running an acceptable loss. This is due to the unique nature of the football industry. Football clubs not only compete for revenues but compete on the field for championships. There is a direct correlation between monies spent on players and sporting...

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