Top-flight English soccer league, Premier League saw their turnover drop by 9% to £2.884 billion as their finances were hard hit by the COVID-19 pandemic which also caused a reduction in payments to the clubs.
This information is contained in the league’s fiscal report for 2019/20.
United Kingdom’s registrar of companies, Companies House published the accounts of the league up to 31st July, 2020.
The total turnover was £2.884billion, a drop of £413 million or 9% compared to the 2019 figure of £3.297 billion. Turnover comprises the value of sales (excluding VAT) from sponsorship monies and revenue derived from television broadcasting contracts. Turnover is recognised in the season to which it relates in accordance with the contract unless this does not reflect the economic substance of the transaction.
International broadcasters revenue brought in £1.352billion, a drop of £46million compared to 2019 figure of £1.398billion.
Total operating expenses was at £275.018 million, a decrease of £5.898 million compared to £280.916 million spent in 2019. The Premier League spent a total of £72.101 million on charitable activities including the Football Foundation, PFA charitable activities and other charitable deeds. The rest was spent on wider football support, good causes like the Football League Solidarity, Youth Development and Community, and others.
In December 2020, Premier League received a Covid-19 related financial support of £50million for EFL clubs, with a grant of £30million and monitored loans of £20million for League One and Two clubs.
The Premier League also committed to fund the interest and fees up to a cap of £15million which is associated with the EFL securing a three-year commercial fund facility in respect of Championship clubs. However, there was no impact on the current year financial results.
It was also noted that certain litigation was instituted against the company in relation to Club-related issues which was likely in reference to a proposed takeover of Newcastle United. However, the Premier League said it did not consider that it has ‘any liability’ in relation to the matter.
Formula One announces positive Q1 revenues for 2021
Formula One has announced positive Q1 revenues for 2021 as it bounces back from the effect of the Covid-19 pandemic.
Liberty Media Corporation, Formula One’s parent company, announced positive first-quarter reports for 2021 as Formula One is on the road to recovery following the financial impacts of the Covid 19 pandemic.
In the first quarter of 2020, Formula One was hard hit by the Covid-19 pandemic as there were no races held within that period due to the onset of COVID-19 which led to a record-breaking loss of $386 million for the first three months of the year.
However, F1 had something to smile about at the end of Q1 2021 as they held an event (Bahrain Grand Prix) on March 28 which significantly boosted their first-quarter revenue for 2021.
The Formula One Group announced an overall revenue of $180 million for Q1 2021, an increase of $141 million compared to $39million generated in the same period last year.
Liberty Media said in the report:
“During the three months ended March 31, 2021, F1 began reclassifying certain components previously reported in Other F1 revenue into Primary F1 revenue to better align with the way it currently evaluates the business.”
In addition, broadcasting revenue was renamed media rights revenue. The more significant components that were reclassified into Primary F1 revenue include fees for F1 TV subscriptions, fees for licensing commercial rights for Formula 2 and Formula 3 races, fees for the origination and support of program footage, fees for broadcast rights for Formula 2 and Formula 3 races and fees for advertising rights on Formula 1’s digital platforms.”
Following the reclassification, Other F1 revenue is primarily comprised of freight and hospitality revenue. $4 million of Other F1 revenue was reclassified as Primary F1 revenue for the three months ended March 31, 2020 to conform to the current period presentation. The impact of the revenue reclassification for the years ended December 31, 2019 and 2020 can be found in Schedule 3 of this press release.”
Formula One now classifies its revenue into ‘Primary Revenue’ and ‘Other Revenue’. The primary revenue will include fees for F1 TV subscriptions, fees for licensing commercial rights, fees for advertising rights on Formula 1’s digital platforms amongst the rest. While the other revenue includes freight and hospitality revenue.
For the primary revenue, it reported a revenue of $159 million an increase of a staggering $142 million (835%) compared to $17 million for the corresponding period of 2020. While for other revenue, there was a 5% decrease from $21 million for Q1 2021 Q1 to $20 million for Q1 2021.
In addition, Formula One paid a total sum of $44 million as team payments in the first quarter of 2021 compared to nothing being paid in the corresponding period of 2020.
Formula One expects the fans to be in attendance in the first half of the 2021 season. “Fan attendance continues to be assessed by relevant government authorities on a race-by-race basis.” While decisions are pending for most events, Formula 1 expects fans to be in attendance in varying capacities at certain events in the first half of the 2021 season, with increasing numbers of fans at events as the season progresses.
Jose Mourinho announced as Roma’s new head coach
Top Italian football club, AS Roma, has appointed Jose Mourinho as its new head coach for 2021/2022 season.
Former Tottenham Hotspur manager, Jose Mourinho has reached an agreement with AS Roma to become the club’s Head Coach for the 2021/22 campaign.
The Portuguese manager who was sacked in April after just seven months in charge due to Tottenham Hotspur’s poor performance has agreed to a three-year contract with AS Roma which will run till June 2024.
In the early hours of today, AS Roma announced that their current manager, Paulo Fonseca, would leave the club at the end of the current season. Hours later, they announced their agreement with Mourinho.
What Jose Mourinho said about the new appointment
“Thank you to the Friedkin family for choosing me to lead this great club and to be part of their vision,” Mourinho said.
“After meetings with the ownership and Tiago Pinto, I immediately understood the full extent of their ambitions for AS Roma. It is the same ambition and drive that has always motivated me and together we want to build a winning project over the upcoming years.
The incredible passion of the Roma fans convinced me to accept the job and I cannot wait to start next season.
In the meantime, I wish Paulo Fonseca all the best and I hope the media appreciate that I will only speak further in due course. Daje Roma!” he added.
This is Jose Mourinho’s second spell in Serie A after his famous two seasons spent in Inter.
What Roma bosses are saying about Mourinho’s appointment
In welcoming the Portuguese coach to the team, club president Dan Friedkin and vice-president Ryan Friedkin said:
“We are thrilled and delighted to welcome José Mourinho into the AS Roma family.
A great champion who has won trophies at every level, José will provide tremendous leadership and experience to our ambitious project.
The appointment of José is a huge step in building a long-term and consistent winning culture throughout the club.”
Tiago Pinto, Roma’s General Manager (Football) also pitched in, saying:
“When José became available, we immediately jumped at the chance to speak with one of the greatest managers of all time. We were blown away by José’s desire to win and his passion for the game: no matter how many trophies he has won, his primary focus is always on the next one. He possesses the knowledge, experience and leadership to compete at all levels.
We know that in order to build a successful sporting project it takes time, patience and the right people in the right positions. We are supremely confident that José will be the perfect coach for our project, for both our immediate and long-term future.
Together with the vision and ambition of Dan and Ryan Friedkin, we will build the foundations of a new AS Roma.”
In case you missed it
Jose Mourinho was sacked 17 months into a three-and-a-half-year contract, after which he got a £16m compensation fee for being relieved of his managerial duties early in his contract.
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