The European football industry has contracted for the first time in a decade, registering total revenue of 25.2 billion euros in the 2019-20 season, 13% less than in the previous year, according to the 30th edition of the Deloitte report 'Annual Review of Football Finance', whicheu analyzes the economic and commercial impact generated by the main soccer leagues in Europe.
“It is still too early to know fully and in detail the economic impact that the crisis derived from COVID-19 is having on European football, although the scope of this in clubs is already beginning to be seen. Specifically, it is possible see the impact that the pandemic has had on the 'matchday', considering that LaLiga teams' combined revenue fell 19% on match days, due to the closure of the stadiums and the entry ban for fans, “said Javier Moncada, manager of Risk Advisory, an expert in Sports & Entertainment at Deloitte.
In total, the five major European leagues generated revenues of 15,000 million euros in 2019-20, 11% less than in the previous season. The Premier League continues to be the leader in the European ranking, with 5,134 million euros in revenue, although it suffered a historical drop of 13% compared to the previous season (2018-19).
For its part, LaLiga recorded revenues of 3,117 million euros in the 2019-20 season, 8% less than the previous one, and gave second place in the ranking to the Bundesliga, with 3,208 million of euros in revenue and that he earned 4% less compared to the previous season.
Serie A from Italy, with revenues of 2,100 million euros (18% less) and Ligue 1 from France, the only one that canceled its season early in response to the pandemic, with revenues of 1,600 million euros (16% less), they complete the total income of 15,100 million euros reached by the five 'top' leagues in Europe, which represents a drop of 11% compared to the previous year.
The report includes the impact of the pandemic on matchday income in the 2019-20 season, as well as the effect on the two largest sources of income in the five major leagues: television broadcasting, which represents 51% of the profits of the clubs, and commercial (36%).
However, the outlook is optimistic for the sector, especially in terms of broadcasting rights in the five major European leagues. The Premier League, for example, chose to renew their local partner agreements for the same value, while Serie A agreed to a 5% reduction in value in their new local agreement.
“Despite the widespread uncertainty caused by the pandemic, soccer has shown great resilience, so It is worth looking forward to the 2021/22 season, which may become the definitive leap towards normalcy and a solid recovery in terms of income for the following seasons. Returning to activity safely, not only for athletes but also for fans, is a key aspect to limit the total economic impact that results, “concluded Moncada.