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How can Premier League clubs raise funds during lockdown?

Written by TrevStone

Since the global pandemic forced the UK into lockdown, fans have not yet been allowed to return to stadiums, meaning that Premier League clubs are missing out on matchday revenue since they are not selling any tickets, but they are also not selling any food, drinks, matchday programs etc. In this article, we will take a look at the ways that Premier League clubs can raise funds during lockdown. 

Pay per view matches

In a recent decision taken by the twenty Premier League clubs, it was agreed that for matches outside of the scheduled TV times fans can stream these games for a one time payment of fifteen pounds. All but one club, Leicester City, voted in favour of this and all of the profits made from the streams will be given to the clubs. 

This has been received very poorly by a vast majority of fans. Considering the Coronavirus leading to people losing their jobs or their businesses going under and generally suffering, it is a time when most people are short on money. The fact that even with an active subscription to Sky or BT, you still need to pay fifteen pounds in order to watch one game. 

As many have pointed out, this is not the right direction to take football, and even if it is a legitimate way for clubs to raise funds, football is a sport for the every day man, and the every day man can not pay fifteen pounds every week to watch football on a screen. A lot of fans have instead been donating fifteen pounds to a food bank as a form of boycott. 

Sponsorship

Another way that Premier League clubs can raise funds during lockdown is thanks to sponsorships. Some industries such as the online betting industry have done well thanks to the lockdown since more people have time to bet online. As such, companies like the betting websites at Findbettingsites have more funds with which to reinvest, and one such investment they may choose to do is to sponsor a Premier League football club. 

The way it works is quite simple. The sponsors pay the clubs a set amount of money and they receive representation in return. For example, Arsenal are paid by Emirates a lot of money to display the Fly Emirates in the centre of Arsenal shirts. In fact they are paid forty million pounds a year just for that simple message.

This is not the only way that sponsorships work though. The previous way is how shirt sponsorship deals work but there are also kit manufacturer deals. Not every club has them but Manchester United for example are paid seventy five million pounds a year by Adidas so that they are the only ones who manufacture Manchester United kit and equipment. It also means that all the shirts that are sold are manufactured by Adidas, so they have a sort of monopoly on that. 

Transfers, redundancies, releases and loans

The final way that clubs can raise funds during lockdown on this list are through managing their players and staff. Firstly, players can be sold to other teams for big fees, like Martinez being sold by Arsenal to Aston Villa for over ten million pounds. The club does not receive all of this money since there are agent fees and other fees, but they do receive a significant portion of it that they can use for whatever they like. 

Staff members that are not completely necessary to continue running the club can also be made redundant. This is less desirable than transferring or loaning players since it is people’s livelihood at stake, not just the club that they play football for. However, sometimes it is just not financially viable to keep staff members that are not working, and clubs can make them redundant to free up some money. 

Similarly to this, players can be released by Premier League clubs. This means that the club cancels the players contract and does not pay them anymore. The player becomes a free agent and can be signed by any club that wants them, but sometimes this is quite difficult. The club saves on the money that they would have paid the player otherwise. 

Finally, players can be loaned to other clubs. This means that they temporarily play for another club, and that other club is responsible for paying their wages except in unusual cases. These are the various ways that Premier League clubs can raise funds during lockdown.

About the author

TrevStone

Trevor 'TrevStone' Uren founded Pro Sports Extra in 2011 at the age of 13. He's hosted a podcast since 14 years old and continues to grow each month! He's currently 24 years old and has interviewed hundreds of professional athletes, business owners, and others who are shining online! Uren has built Pro Sports Extra to over 5M monthly visitors.