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‘Premier League clubs lost £600m in season before virus’

Premier League clubs made a combined loss of £600 million in the 2018/19 season, even before suffering the financial pain of the coronavirus pandemic, a report revealed on yesterday.

Analysis from football finance experts Vysyble shows the 20 clubs in the English top-flight combined to post the huge loss despite record revenues of £5.15 billion ($6.6 billion)

The financial impact of COVID-19 is set to have a huge impact on the Premier League, even if plans to complete the current season behind closed doors go smoothly.

Premier League sides face paying a reported £330 million to broadcasters in rebates as matches could not be completed on schedule.

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An estimated £126 million could also be lost in match-day income from gate receipts and hospitality.

“The COVID-19 virus is not the cause of football’s financial distress. It is merely the accelerant on what our data has very clearly and very correctly identified as a much longer-term problem,” said Vysyble director Roger Bell.

“The 2018/19 numbers are a disturbing and profoundly worrying financial outcome from England’s senior football divisions and is symptomatic of the deeper issues with the overall financial model.”

Wage costs for Premier League clubs have risen to £3.12 billion.

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Everton posted alarming losses of £111 million, while Chelsea’s failure to qualify for the Champions League saw the Blues lose £96 million.

Yet the most worrying sign for the future financial health of the league may come from Tottenham.

Spurs posted a league-high profit of £68.6 million for the 2018/19 season on the back of a run to the Champions League final.

But the London club announced last week they had borrowed £175 million from the Bank of England.

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They fear they could lose £200 million over the next year due to the loss of matchday income, cancellation of non-football events such as NFL matches and concerts and rebates owed to broadcasters.

“Our data has consistently demonstrated that football has been the master of its own misfortune with an over-reliance on TV revenues, staff cost-to-revenue ratios regularly in excess of safe operating limits (UEFA guidance recommends 70 per cent) and a failure to recognise key financial dynamics and trends,” added Bell.

The economic outlook for the Championship is also bleak.

Four Championship clubs have yet to release their full 2019 accounts, but the second tier of English football has so far combined for economic losses of £307 million.

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The final economic loss total for all 24 EFL Championship clubs is expected to be at least £350 million. – worldfootball.net

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Kotoko withdraws from Ghana Premier League

Kumasi Asante Kotoko has withdrawn from the Ghana Premier League until further notice.

This follows an incident of hooliganism which occurred during their match with Nsoatreman FC leading to the death of a fan, Nana Yaw Frimpong, better known as Pooley.

In a statement issued by the management, the added that “Finally, Asante Kotoko wishes to state that all footballing activities of the senior team are on hold until further notice. Our stance remains unchanged, we will not resume footballing duties until justice is served, and concrete steps are taken to prevent such barbaric acts from ever happening again.”

They added “In the meantime, management has decided to suspend all activities relating to football on the pitch until further

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investigations into the matter.”

Against this backdrop, they called on their archrivals saying, “It is time to end the cycle of violence hooliganism, and lawlessness that threatens the integrity of our game. We call on all clubs to support this cause, especially our greatest rivals on the pitch, Accra Hearts of Oak, because this is bigger than competition–it is about securing the future of our domestic league once and for all.”

“Asante Kotoko remains deeply heartbroken by the tragic events that unfolded at the Nana Koramansah Park, leading to the senseless murder of our cherished supporter, Francis Yaw Frimpong,”they added.

“The pain of his loss still lingers, but in these trying

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times, we stand united as a club, a family, and a force for positive change in Ghanaian football. While our grief is immeasurable, we take solace in the fact that justice is beginning to take its course,” he said.

By Edem Mensah-Tsotorme

Read full statement below

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FIFA Financial Governance Workshop: Share insights with local clubs- Abedi Pele

Former three-time African footballer of the year Abedi Ayew ‘Pele’ has called on the Ghana Football Association (GFA) to share lessons from the three-day high-level FIFA financial governance workshop.

The workshop held recently was focused on the latest insights and tools for enhancing financial governance and accountability in football administration.

This, according to Abedi Pele, must be shared with local clubs to help them understand the importance and value of the best financial practices to save Ghana football from its present downward spiral.

He made this known at the closing ceremony of the workshop last Friday in Accra, which was organised for representatives from 10 African countries.

The Ghanaian legend, while applauding FIFA for selecting Ghana to host the high-level intensive workshop, noted that workshops like the just-ended one were what the continent, and especially clubs in Ghana, were crying for to help and position them well for sponsorship and support from institutions of great repute to raise the level of the game higher.

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“Issues of financial mismanagement, lack of accountability, transparency, and efficient resource use within football organisations have always been our bane here in Ghana, and with a workshop like this providing participants with valuable insights and tools to fortify their organisations’ financial foundations, ensuring long-term sustainability, accountability, and effective resource management, Ghanaian clubs will begin a reset to proper football management,” he said.

According to him “It’s a feather in the cup of the GFA to have FIFA selecting Ghana for this leg of the workshop. Now I call on you, General Secretary Prosper Harrison Addo, to make sure information from this workshop is spread across to all clubs in Ghana because these are the things they need to strengthen their governance framework and ensure the long-term growth and sustainability of the clubs.”

Mr Harrison Addo noted that it was a call in the right direction, and although his outfit has long started reforms in terms of the club licensing regulations, a lot more would be done to help clubs gain a firm foundation for the future success of the game.

“The workshop has been extremely helpful and equipped us with the tools and knowledge to uphold the highest standards, fostering trust and integrity within our football community,” the Maestro added.

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Head of the Financial Governance Programme at FIFA, Christoph Suppiger, said the three-day session emphasised the importance of accountability, transparency, and responsible financial management within the context of the FIFA Forward programme and also helped Member Associations to know how to prevent conflict of interest, planning and budgeting, and the procurement process, as well as the importance of having adequate supporting documentation.

The workshop held under the banner of the newly established FIFA Campus, which serves as the central football learning hub for all FIFA capacity development and education initiatives, had Abedi Ayew decorating all the facilitators and participants with customized sashes as well as presenting signed Black Stars jerseys.

 By Raymond Ackumey

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