How Will Football Survive the COVID-19 Financial Crisis?
Football is in an unprecedented situation, with every team set to lose money as COVID-19 causes worldwide chaos. We look at how football will survive this existential crisis and what more must be done
It is the night of Wednesday, the 11th of March, 2020, and the UEFA Champions League is upon us once again. Still, amid all the excitement, there is a palpable concern. TV broadcasters across Europe are holding emergency board meetings.
Everyone is glued to their television sets. Football clubs are holding their collective breaths. It should be a night of superb football, but there are more significant issues to be concerned with. A night of drama sees Liverpool play Atletico Madrid before fans at Anfield; however, Paris Saint-Germain will play Borussia Dortmund in an empty Parc des Princes.
That was the last of the Champions League for now. Fast-forward a month later, and that night seems like a lifetime ago. Sports have ceased to exist since COVID-19 fundamentally destroyed the essence of competition.
Last week, I wrote whether Premier League clubs should furlough their staff something I strongly disagreed with. Unconnected, Liverpool reversed their decision later that day. Their initial decision was met with condemnation.
It's hard for clubs worth millions or billions to justify paying a player tens or hundreds of thousands while not paying staff minimum wage. It is inequitable.
However, I contradict myself; how do clubs survive this crisis if they cannot seek financial support that has been offered and for which they are eligible?
During the current financial uncertainty, television revenue has become incredibly important. It could become hugely beneficial to teams lower in the football pyramids. Television revenue would only be a quick fix, however, and not a long-term solution.
If COVID-19 continues as predicted, what will happen when the money disappears? Money does not grow on trees. If teams cannot ask for or receive support, they will have to make sacrifices.
Many of the football elite have taken pay cuts to curb the financial burden on football clubs. Many of them are very willing to help others during the crisis, however, I question whether all were happy to do so. It is essential that they a pay cut, like millions of others.
There is light at the end of the tunnel, or at least in German football, there is. Teams are now training, albeit in pairs, as football teams across Europe look on with envy. Only time will tell if this is a masterclass of timing or a proverbial massive own goal.
As Paderborn's sports director, Martin Przondiono, said, "We have two combined central goals, namely to keep the players in a very good condition and at the same time avoid possible infections."
It is an outrageous balancing act. It is impossible to predict when the right time is. It is mainly trial and error but with the horrendous risk of lost life attached to it.
I do not expect English football to return to training any time soon. The authorities would not allow it. The same goes for France, Spain and Italy.
There is the issue now that clubs are not only desperate to save themselves from financial ruin, but also from losing out to their rivals. Moving too slowly could come at a mighty cost. Imagine if the Champions League resumed—and Bayern won the competition. With an indifferent training schedule, there could be a large distortion of results.
Never in sporting's wildest dreams could such a dilemma have been predicted. Football is known for its pure, unscripted theatre. The current situation is similar to that but takes on a unique and sinister agenda.
As COVID-19 continues its deadly assault, the intolerable pressure on football clubs continues to mount. Financial benefits, particularly in the United Kingdom, will help clubs stay afloat. Wage cuts, too, will ease the burden. Releasing vital TV revenue early will help matters dramatically, but it is a short-term fix.
For many clubs, this could be the end – a century of football heritage down the gutter. Whatever happens, football will never be the same after COVID-19 subsides.