HEALTH · SPORTS · WORLD NEWS

Covid-19 has caused unprecedented crisis for European Football_Femi Ehiabhi

European football clubs could take a 20 to 25 percent hit to their enterprise values (EV) because of the “unprecedented crisis” caused by the COVID-19 pandemic.

A study conducted by KPMG revealed this, taking into account players’ devaluation as well as the performance of the largest listed teams in recent months.

It then compared this with KPMG’s data collected earlier in the year.

“… KPMG’s forecast of the devaluation of the football sector at the top end of the market is between 20 percent and 25 percent, when compared with our recently published results of clubs’ EV as of Jan. 1 in 2020,” KPMG’s global head of sports, Andrea Sartori, said in a statement.

“Having said that… peak devaluations for individual clubs can range from 15 percent up to 30 percent.

“This depends on the strength of a particular club’s balance sheet, level of debt, structure of revenue mix and dependence on player trading activities.

“Obviously, each club’s situation and EV impact will need to be assessed individually upon availability of their 2019-2020 financial statements.”

The study estimated that the squad value of French champions Paris St-Germain (PSG) could drop by 25.4 percent after Ligue 1 was cancelled in April.

That figure would have been around 18 percent if top flight action had returned from its enforced break.

The other four of Europe’s “Big Five” leagues —- England, Spain, Germany and Italy —- have all resumed their seasons, but matches are being held without fans present in stadiums.

Spanish giants FC Barcelona’s squad value could fall from an estimated 1.136 million euros (1.28 billion dollars) in February to 903 million euros —- down 20.5 percent, the study added.

Manchester United’s squad value could drop by 13.8 percent, while that of Bayern Munich faces a fall of 15.8 percent.

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