The Coronavirus pandemic has wreaked havoc in all sectors of the world. Sports industry have also taken a major hit. All the sporting activities were suspended in March. Although they slowly resumed in the June-July period, still now the maximum number of the events are taking place behind closed doors.
LaLiga side Barcelona has also incurred losses in the 2019-20 financial year due to COVID-19. Fans were banned from attending matches inside the stadium which meant Barca lost on matchday revenues.
The official statement read: “Barça closed the year with revenue of 855 million euros, below the 1.047 billion set in the budget, which had forecast a profit of 11 million euros. The final result was after-tax losses of 97 million euros, largely as a result of lost revenue due to the effects of the pandemic.”
“ECA has estimated the overall loss at around 4 billion euros and Barça, as one of the largest clubs in Europe and with such extensive diversification of its income, is one of the most affected.”
Barcelona also explained the reasons behind their losses. They claimed: “The Club suffered financially from the consequences of games being played behind closed doors, as well as the total cancellation of the basketball Euroleague, and hence there was a considerable loss of income. The lack of tourists and visitors to the city of Barcelona due to the reductions and limitations applied to international tourism also meant far fewer visitors to Barça’s premises, meaning major losses in terms of such areas as visitors to the Camp Nou Experience and the sale of products in official stores.”
The Catalan giants further added: “It is estimated that without Covid-19, revenue of 1.059 billion could have been achieved, which would have set a new record for a football club, breaking the 1 billion barrier as forecast by the 2015-2021 Strategic Plan.”
The 2019-20 financial year has been a tough period for all the football clubs. With no matchday revenues among other things, all clubs have faced losses this year.
Everybody is hoping that the situation becomes better so that things can go back to their normal way.
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