March 3 – Spain’s LaLiga has released an economic impact report detailing lost income across its top two divisions and the cuts that clubs have made, in particular with player wages and expenses, as they battle with the financial fall out from the pandemic.
The report, in conjunction with Price Waterhousecooper, shows net financial impact of the pandemic for the 2019/20 and 1920/21 seasons to grow to a negative €1.03 billion. The figures could have been a lot worse at over €2 billion if clubs had not followed limits imposed via LaLiga’s economic control rules and in particular its recalculated squad cost limits.
In the 2019/20 season clubs made savings of €175 million against budget, made up of €149 million in player wages and expenses, and €149 million in other expenses. PwC project that the impact of covid on the season’s revenues was €366 million (7%).
For the 2020/21 season the impact on potential revenue is projected as being €1.647 billion, a 31% drop on what clubs and LaLiga could have expected to generate in income. This has been offset by LaLiga reducing limits of club spending on player expenses by €341 million across the leagues, and the clubs making further cuts of €235 million. In total, a net impact of €854 million.
Looking at the areas where income has been hardest hit, PwC projects match day income will drop 71% for the 2020/21 season (it dropped 17% for the 2019/20 season). In contrast sponsorship has remained strong and has even risen by 5%.
LaLiga’s core TV income stream has held steady with just a €146 million (5%) drop as the result of the pandemic.
In contrast player transfer income has plummeted. While there was little impact for 2019/20, PwC projects a €727 million (58%) drop in potential income for 2020/21.
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