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.