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UEFA to cut prize money for next 5 seasons due to financial impact of COVID-19
UEFA has decided to cut prize money for the Champions League and Europa League competitions due to the financial impact of the COVID-19 pandemic.
The Union of European Football Association (UEFA), lost £514million from the Champions League and Europa League last season due to the COVID-19 pandemic.
This led to reduced TV and sponsorship income, and as a result, it plans to cut prize money for club competitions – Champions League and Europa League, over the next five years (seasons) to offset the incurred losses.
READ: Football: AC Milan announces loss of €195million
According to The Times, UEFA wrote to its 55 member associations revealing the amount lost (£514million) due to the financial impact of the pandemic and its plans to cut the prize money for its two competitions.
By spreading the costs out to offset losses, competing clubs in the two UEFA club competitions (Champions League and Europa League) can expect a roughly 4-per-cent drop in Uefa prize money in each of the next five seasons.
READ: Manchester United: A football club or a business
The 2019-20 Champions League and Europa League were on hold for five months (mid-March to August) when the pandemic wreaked havoc on the global sporting calendar, with the UEFA opting to schedule matches from the quarter-finals which were played as single-match knockout ties at neutral venues in Lisbon, Portugal (Estádio da Luz and Estádio José Alvalade).
DAZN, an English streaming platform terminated its rights deal for the UEFA club competitions (Champions League and Europa League) in particular places like South East Asia and Japan, the streaming platform cited the delay and the reduced number of matches (one-legged tie) as a reason for the termination.
READ: Ajax FC’s shares fall by 21% after Champions League defeat
Telco Altice, a French multinational telecommunications corporation, which holds exclusive rights for the Champions League and Europa League in France, has publicly demanded its money back, due to the delay and reduction in matches played. Telco Atlice pays €350million per season for its rights to the two UEFA club competitions for the 2018-21 cycle.
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Also, UEFA recently announced that financial services company – Mastercard, has renewed its Champions League sponsorship contract to continue through the 2021-24 cycle extending its 26-year partnership, dating back to 1994. The agreement also includes sponsorship rights for the UEFA Super Cup competition in 2021, 2022, and 2023.
Sports
Football: Manchester United net debt rises by 133% to £474.1million
Manchester United recently announced its revenue for the fiscal year of 2019/20 ending in June 2020.
English top-flight club, Manchester United, recently announced its revenue for the fiscal year of 2019/20 ending in June 2020. The club’s net debt increased by 133% to £474.1million from £270.5million. However, due to the economic uncertainty caused by the pandemic amidst fears of a second wave of COVID-19, the club has refused to issue revenue guidance for the 2020/21 financial year.
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This is according to KPMG Football Benchmark Club Finance and Operations Tool and club’s press release.
READ: Football: AC Milan announces loss of €195million
What you should know
- Manchester United’s net debt has increased in the fiscal year of 2019/20 to £474.1million, an increase of 133% compared to £270.5million in the previous year.
- The club posted a cumulative revenue of £509million for the 2019/20 fiscal year which ended in June 2020 and also represents a nosedive of 18.8% compared to revenue of £627.1million in the 2018/19 fiscal year. This is also the lowest figure the club has recorded since the 2014/15 fiscal year.
- Broadcasting revenue decreased from £241.2million to £140.2million, a drop of 42%. This was primarily attributed to an estimated £15.0m Premier League rebate due to broadcasters, broadcast schedule changes to the 2019/20 football season, non-participation in the UEFA Champions League, and the impact of playing two fewer Premier League away games.
- Due to the impact of postponement of the Round of 16 Europa League home match and closure of non-match day operations in mid-March which saw Old Trafford shut down, matchday revenue decreased to £89.8million, a drop of 19%.
- However, despite the losses, United’s commercial revenues remained resilient, posting an increase of 1.4% to £279m in the previous year.
READ: Roma on the verge of signing new deal with New Balance after premature termination with Nike
READ: Chelsea FC posts N46.42 billion loss in 2019
READ: U.S. budget suffers a deficit of $3.1 trillion in 2020, as pandemic slams the economy
Manchester United’s Executive Vice-Chairman Ed Woodward said, “Our focus remains on protecting the health of our colleagues, fans, and community while adapting to the significant economic ramifications of the pandemic.
“Within that context, our top priority is to get fans back into the stadium safely and as soon as possible.”
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