Premier League clubs are set to lose a staggering £1 billion as a result of the economic impact of COVID-19.
Financial services firm Deloitte says clubs in England’s top-tier face a heavy reduction in their revenues for the current season.
The 2018-19 Premier League season saw the 20 clubs accrue a combined revenue of over £5 billion.
However, most clubs are losing money due to the economic challenges caused by the Coronavirus pandemic.
England, like many other countries across the world, suspended its league in March when the health crisis looked to be escalating.
Although the Premier League is set to return later in June, the remaining 92 games will be played behind closed doors.
Deloitte’s Dan Jones says English clubs are not the only ones affected by the pandemic, but all clubs across Europe.
He said clubs will record “significant revenue reduction and operating losses” in broadcast and matchday revenue.
“You’ve got 107% of revenue going out on wages. You can see the problem looming,” Jones said.
“A salary cap is a blunt instrument, but if you can only spend 70% of revenue on salary, and applied that in 2018-19, you take £300m out of the wage bill and wipe out the losses.”
Meanwhile, the 2019-20 Premier League season will resume on June 17, when Aston Villa will host Sheffield United.