Analysis: Only 11 of 125 European clubs set to post a profit against income reduction postulated at 25 per cent
30 June 2020
How will a big revenue dip affect European clubs' earnings before interest and taxes (EBIT)?
Only 11 of 125 clubs are set to post a profit from their EBIT once a 25 per cent reduction has been applied to their 2019 revenue accounts, holding all other accounts for that financial year constant.
Despite leagues across Europe having resumed action, it is a fact that clubs' revenue streams will be hit hard - matchday, commercial and broadcast income are all set to be much lower in the current financial year. And possibly in the coming year too.
But how much lower? And what will the impact be on their financial health?
We have conducted an analysis of 125 European clubs' 2019 accounts and looked at the impact of a turnover reduction postulated at 25 per cent, ceteris paribus, on their EBIT (earnings before interest and taxes).
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