Premier League could lose £1 billion as clubs face danger of extinction

The English Premier League could potentially lose around £1 billion in case the 2019-2020 season isn't continued.

Additionally, football in England is also facing a danger of losing some of its clubs and leagues because of the tremendous economic challenges due to the coronavirus pandemic, which has halted most major sports across the UK and the world.

Premier League chief executive Richard Masters has described the financial losses "beyond the wildest imagination." Masters warned that there could be further losses in case the situation worsens and the complications extend beyond the current season.

Football Association chairman Greg Clarke has even said that many communities may lose their clubs with little to no chances of resurrection.

Just when the projected losses are skyrocketing, Masters defended the clubs that are considering the use of a government furlough scheme as a measure to protect their finances.

Masters said, "The furlough scheme announced by Government is meant for the whole economy, including many enterprises which might be regarded as providing entertainment or otherwise dependent on elite talent. Ultimately, the very heavy losses that we face will have to be dealt with or else clubs or other enterprises who depend on football for income will go out of business."

The Culture, Digital, Sport, and Media committee responded by asking the Premier League not to defend the indefensible.

Some of the clubs have sent their non-playing staff on temporary leave, while some clubs are currently in talks over the salaries of players.

Tottenham Hotspur has recently announced the furlough of their non-football staff while still paying the coaches and footballers in full.

Liverpool had also previously decided to furlough its staff. However, on Monday, the Premier League leaders have reversed their decision and apologised soon after facing criticism.

Meanwhile, BBC reports that the Premier League has proposed a minimum 30% pay cut for the players. As of now, the top-flight players are negotiating with their respective clubs over proposed wage cuts after collective talks over the weekend ended without a resolution.

Since no games are currently being played, clubs are exposed to cash flow issues because of zero ticket sales and non-existent merchandise income.

Meanwhile, England men's team manager Gareth Southgate and women's team coach Phil Neville agreed to take a 30% pay cut.