Meta: The global pandemic has not been over yet, meaning many different sectors are aggressively affected by it, including the football industry. The Premier League has taken actions to help clubs solve financial problems.
Covid-19 and its impacts on different aspects of our lives
It has been nearly a year since the very first covid-19 case was confirmed and reported in china. The pandemic and its far-reaching consequences are no doubt real despite the efforts to minimize its spreading. Without any doubt, the pandemic caused the largest global recession in history when more than 30% of the global population at a time was placed on social distancing.
Many different sectors are seriously affected by the global pandemic. Source: UNIDO
Panic buying behavior, an increase in the usage of goods during quarantine to fight the pandemic, disruption of manufacturing activities in many countries, especially mainland China – the factory of the world. The shortage of foods, pharmaceuticals, healthcare equipment,…is globally widespread due to panic buying and the lockdown of different sectors.
The global stock market fell on 24 February 2020 due to a sharp increase in the number of covid-19 cases in mainland China. Since the 200 financial crisis, this was the first time the stock market witnessed its largest single-week declines. Many parts of the world were dramatically affected when the global stock market crashed in March 2020.
After a covid-19 outbreak, possible instability was generated at a fast pace. Customer behavior changes, leading to temporary food shortages, price spikes, and market disruption. Boosting price was more likely to affect vulnerable populations who depend on markets for their food and also other assistance for their living.
Every industry, business, sector,…has faced many troubles following the covid global pandemic, such as tourism, fashion, and technology,…Sports are being canceled or postponed, meaning one of the main income of footballers and clubs was cut. If it had been for a short time, things were not that severe. However, the lack of income in the long term, without any doubt, caused a financial burden on football clubs.
Matches take place with an empty stadium with no fans and cheers. And you can only follow online through online football websites, live applications or broadcast live from bookmakers as fun88 bookie. Many people also tend to find entertainment at home through e-sports. You can easily find them to deal with your time in bondage by Covid-19.
Financial packages given to clubs to help them overcome the financial burden
The negative impacts of the global pandemic on sports are just so big to make them struggle for a living. Realizing that, the Football League has decided to issue a financial package of £250 million to help clubs survive the financial impact of the covid pandemic. League One and League Two were given an immediate financial package of £30 million. This financial package is aimed at combating the catastrophic financial impacts of a global pandemic.
The minimum financial package given to football clubs in League One would be £375,000 while the minimum amount given to clubs in League Two would be £250,000.
EFL and Premier League also agreed to give a package of £15m distributed using a lost gate revenue share calculation. The bottom of two divisions will be given a further £20 million – a monitored grant. Clubs under these two leagues will apply for extra funds considering their need. The Premier League chief executive, in his commitment, said that the financial packages are aimed to protect all clubs in these unprecedented times.
He also stated that the Premier League is aware of the important position of all clubs playing in their communities. The Premier League committed that no EFL club has to go out of business as the devastating impact of the global pandemic.
All football clubs will continue to suffer the financial consequences of the covid-19 pandemic. It is unavoidable. To lessen the seriousness of the impact, Premier League’s shareholders decided to provide financial packages in order to help them overcome the financial burden.
Another £15 million is committed to providing EFL by the Premier League with the purpose to help them secure a loan of £200 million. This money will be given to clubs to pay their debts and taxes rather than to sign new players. All activities, tournaments and events have been frozen for about nine months, meaning that many football clubs are facing a risky future. The league structure is also in danger of collapsing.
Financial support is needed to help football clubs overcome the financial burden. Source: FIFPro
According to Dale Vince – the chairman of Forest Green, it is the voluntary act of kindness of the Premier League which makes a big difference. The Premier League did not have to do this and it is something that Dale Vince and his peers are grateful sincerely. He did not think there was an example of someone like the Premier League who was willing to help a neighbor in the same industry.
“We’ve been affected by lockdown restrictions and every other sector of business that has had those restrictions has had support (from the government) – we’re had none. Fair play to the Premier League, I think it’s brilliant what they have done. It is a standout, unique example in our country.”
The EFL Chairman, Rick Parry, also praised this financial support. According to him, throughout the process, their overarching aim has always been to ensure no EFL clubs collapse as a consequence of the global pandemic.
Oliver Dowden, the culture secretary, expressed that he was pleased that now they have resolved, of course, on behalf of their clubs. Since they have maintained through many months of lockdown restriction, they would be in need of much support and clarity following months of uncertainty. He also stated a fact that football clubs have come together to agree on a substantial package. Football audiences start to return after many months and they hope to build things on this as soon as it is safe.
£250 million financial support package for men’s elite football clubs and £300 million government support for women’s football enable the National League and other main spectator sports to get clubs and the whole sports through this.
Knowing this, the chair of the digital, culture, media and sport committee – Julian Knight MP – said he welcomed this financial rescue package but at the same time, criticized the delay. In this opinion, this has pointed out the lack of accountability in football’s governance structure itself, thus, requiring an immediate need to review the management of the business of football so that not only the fans but also the clubs and nation are beneficial.
Sports is no doubt one of the sectors affected most seriously by the global pandemic. It may take many months or years for the industry to recover from the financial impacts. Financial packages are necessary this time to help them out.