How Professional Football Clubs can survive in COVID situation?
Updated: Apr 3, 2021
Later City News: Corona crisis caused existence-threatening liquidity issues and stressed the financial management of many Professional Football Clubs (PFCs), including premier league teams.
Professional sport organizations calculate in general only small profits and the sector is highly vulnerable to crises, a combination that makes professional football unstable and fragile.
A research done by a group of researchers from Finland, Sweden and Italy confirms that the unexpected adverse shocks that lead to a revenue reduction, like the COVID-19 pandemic, have the potential to financially collapse the industry, emphasized by interviews' participants who reported that without playing most of the clubs would not have survived longer.
This research has been published by Elsevier revealed that PFCs have hardly established any crisis management structures and the research suggested that PFCs engage in developing internal expertise on how to deal with a crisis.
Sponsors are one of the major stakeholders of PFCs. To diversify the financial risk of a club, our interviews highlighted that it might be beneficial to have a main sponsor from an industry whose economy is not cyclical with sport or, even better, from a crisis resistant sector.
Further, PFCs should invest in the relationships with sponsors because an emotional