Report: Spanish giants facing biggest financial hit from pandemic
Spanish duo Barcelona and Real Madrid are in line for the biggest losses of the top European clubs if there is a slow recovery for their league in the 2020-21 season, according to a new report.
In the worst-case scenario emanating from the coronavirus pandemic, it is claimed the LaLiga giants face missing out on revenue of upwards of €400 million ($436 million).
With Covid-19 cases having fallen and lockdown restrictions relaxed in recent weeks, the suspended Spanish league is planning to resume the 2019-20 campaign, behind closed doors, on 12 June.
However, in the event this is not possible, defending champions Barcelona stand to lose between €120 million and €260 million and Real between €100 million and €230 million, according to the study conducted by Deutsche Bank and published in Spanish media on Thursday.
Across Europe, the bank is estimating that the top clubs will lose between 13 per cent and 30 per cent of revenue if their leagues cannot be completed this season.
The Spanish figures compare with between €90 million and €215 million for England’s Manchester United and between €75 million and €185 million for their domestic rivals Manchester City and Liverpool if the Premier League cannot resume.
France’s Ligue 1 has already terminated its season, meaning champions Paris Saint-Germain are set to lose out on between €100 million and €195 million, according to Deutsche Bank.
However, Germany’s Bundesliga resumed, without spectators, last weekend, and aims to finish by the end of June, sparing top club Bayern Munich of potential losses of between €80 million and €200 million.
The report sets out two scenarios for next season, with the fast recovery entailing a reopening of stadiums with a limited capacity and a fall in business for the big clubs of between 4 per cent and 13 per cent.
Under this situation, which envisages ticket revenue down 10 per cent to 30 per cent and sponsorship income down 5 per cent to 20 per cent but no change to the value of television contracts, Barcelona stand to miss out on between €30 million and €120 million and Real Madrid between €30 million and €110 million.
However, in the most pessimistic outlook, the income of the top clubs would slump by 27 per cent to 48 per cent, as matches would remain behind closed doors, sponsorship revenue would fall by 30 per cent to 60 per cent and payments from broadcasting partners by a fifth because of a less attractive media product.
The report said: "The television rights would be renegotiated with a 20 per cent discount since part of the show is diminished when played in empty stadiums; Ticketing revenues, which on average represent 15 per cent of the turnover of the 20 major European clubs, would be completely lost."
In this scenario, Barcelona stand to lose between €270 million and €450 million and Real Madrid between €240 million and €400 million.
For other top clubs, losses range from €30 million to €100 million for Manchester United, €25 million to €100 million for Bayern Munich and €30 million to €100 million for PSG in the case of a fast recovery and respectively €215 million to €360 million, €195 million to €345 million and €220 million to €360 million in the case of a slower one.
Yesterday, in announcing financial results for the third quarter, Manchester United claimed that the pandemic had cost the club £28 million ($34 million) to date, and that the eventual figure will likely be much higher.