Big Six face financial black hole as sponsorship deals dwindle during coronavirus

first_img3THE Big Six could be the victims of a sponsorship cash crisis if the worst virus fears are realised.Liverpool, Manchester United and City, Arsenal, Chelsea and Tottenham rake in the bulk of the £3billion annual TV revenues.3 Daniel Levy’s Tottenham could lose out on their sponsorship deals.Credit: PA:Press Association3 Ed Woodward’s Man Utd could see their income slashedCredit: Getty Images – GettyBut they also rely on many millions of pounds of income from lucrative commercial activity — especially sponsorship.And one senior chairman warned the situation could “come to a head very soon”.United grossed a stunning £275million in 2019 from commercial deals, including £173m in sponsorship.City, Liverpool and Chelsea all earned more than £180m from commercial sources, with Spurs recording £135m and the Gunners £111m.Arsenal’s figure was the lowest of the Big Six but still a staggering £70m ahead of seventh-placed Everton.Even stripping out matchday and training kit deals, including Premier League sleeve sponsors, United still bagged £111m in sponsorships — with City on £97m and Spurs and Chelsea neck and neck for third with contracts worth about £65m.⚠️ Read our coronavirus in sport live blog for the latest news & updatesBut club chiefs fear this essential income could be at risk in light of the global economic slowdown caused by the virus.And if this season is abandoned, the payback of TV money will be another financial blow.The club chairman explained: “Everybody seems to think the Premier League is awash with revenues.“If we have to give back the £760m of broadcast income that we expected for the last part of the season, then it’s true a lot of clubs would be hurt.“But for the bigger clubs the worry is as much, if not more, about the impact on their other commercial activity — because we know that companies are looking at the ‘force majeure’ provisions that are in their contracts.“In any economic downturn, promotional budgets are always the first things that are vulnerable. And that could come to a head very soon.“If we get to the end of June and are still in the same place in terms of there being no obvious sign of football returning, there’s a real danger that the sponsors will be arguing they need relief from their obligations.“If they haven’t got a market to sell their products to, it is hard to justify paying money for sponsorships.CORONAVIRUS CRISIS – BE IN THE KNOWGet the latest coronavirus news, facts and figures from around the world – plus essential advice for you and your family.To receive our Covid-19 newsletter in your inbox every tea time, sign up here.To follow us on Facebook, simply ‘Like’ our Coronavirus page. MOST READ IN FOOTBALLTHROUGH ITRobbie Keane reveals Claudine’s father was ’50-50′ in coronavirus battleTOP SELLERGavin Whelan has gone from League of Ireland to David Beckham’s InstagramPicturedAN EYEFULMeet Playboy model and football agent Anamaria Prodan bidding to buy her own clubI SAW ROORodallega saw Rooney ‘drinking like madman’ & Gerrard ‘on bar dancing shirtless’ExclusiveRIYAD RAIDMan City’s Riyad Mahrez has three luxury watches stolen in £500,000 raidNEXT STEPJonny Hayes set to move to English Championship having been let go by CelticREF RELEASEDChampions League ref Vincic released by cops after arrest in prostitution raidKEANE DEALEx Man United youth ace David Jones says Roy Keane negotiated a contract for himNICE RONCristiano Ronaldo goes on family bike ride with partner Georgina Rodriguez & kidsREF RAIDChampions League ref Vincic ‘arrested in raid into drugs and prostitution ring'”A lot of clubs are wondering what is going to happen.”Broadcast money represents a far higher slice —­ up to 80 per cent — of total revenues for the smaller top-flight clubs such as Bournemouth, Norwich and Brighton.So they have proportionately more to lose if next season is curtailed in an attempt to get this term finished.Premier League games set to be shown live on TV at 15:00 if season resumes after long-standing blackout liftedlast_img read more