africanspur
Full Member
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- Sep 1, 2010
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- Tottenham Hotspur
They aren't totally different business at all. Football clubs have a very significant and clear outgoing that currently they are trying to negotiate down (almost every single club in the PL has a wage to turnover ratio of at least 50%, the ones in the championship seem to almost universally have wage to turnover ratios of over 100% for some reason). Their turnover is however, for all intents and purposes, £0 right now. They aren't making money from matchdays and don't know when the next time they can will be. They may have to give back some TV money. They are not going to be getting prize money if leagues aren't running and, for those clubs which factor in some kind of European competition, they don't know if there will be Europe this season or indeed next season.Totally different businesses. PL clubs have a lot of revenue locked in ahead of time. Airlines especially have billions of dollars in outgoings they can't get out of (planes are expensive, fuel is bought in advance), they can't afford to pay staff too without revenue coming in. Fast fashion and other consumer businesses like that who operate on the basis of a high turnover of goods to sustain revenues are also far more at risk.
I would say there are a few on your list who won't see the other side of Covid-19 even with the furlough scheme.
I would imagine there are quite a few of these which won't see the other side of Covid and I reckon there's quite a few football clubs that won't either, if this goes on for more than a few weeks (which it almost certainly will).
I would also say in your example that the players are essentially the planes. Their multi million pound assets which are currently useless but which fundamentally are the most important aspect of the business. And which are currently their biggest outgoing.
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