Covid-19 pandemic: European football (Soccer) heavily impacted
The economic impact of the Covid-19 pandemic is unprecedented and affects almost all sectors. The soccer world is not spared from its consequences. According to a recent study by KPMG, the pandemic has caused a decrease in operating revenues of European clubs of more than one billion euros. In France, the situation for professional clubs is made even more uncertain by a major crisis in television broadcasting rights.
KPMG football report
Like other sectors of the economy, the soccer world has been affected by the Covid-19 pandemic. According to the latest report on the European soccer world by audit and consultancy firm KPMG, published this month, the Covid-19 pandemic has, in fact, led to a total decrease in operating revenue of almost one billion euros in the 2019-2020 season, a decrease of around 14% compared to the previous year. This €1 billion is a low estimate of the revenue losses. The corona virus pandemic created it. This amount is based on of the financial results of 20 European clubs. Of these, only two clubs saw their operating revenues increase: Sevilla and Borussia Dortmund. On the other hand, the biggest shock was suffered by FC Porto with a drop in operating income of around 50%, admittedly following an early elimination from the Champions League.
PSG football club
In this context, some clubs had a significant loss in the previous season. This is particularly true of Paris Saint-Germain (PSG). Their deficit is estimated for the 2019-2020 financial year at more than €125 million. That is an amount higher than the budget of most other Ligue 1 clubs. The drastic drop in operating income has also weighed on the result of FC Porto. Porto’s loss is expected to be 116 million euros. On the other hand, some clubs such as Real Madrid and Bayern Munich managed to post a small profit. The result of a successful Champions League campaign for the latter.
Kylian Mbappé, the footballer with the highest market value
According to KPMG estimates, Paris Saint-Germain’s French striker Kylian Mbappé remains the best soccer player. He is playing in one of Europe’s top leagues with the highest market value. This represents the theoretical value of a transfer. In the case of Kylian Mbappé, 200 million euros is his fortune. It is down 25 million euros from the previous year.