Premier League clubs were rescued in time amid worries about the possibility of bankruptcy of Burnley.
Burnley at risk of bankruptcy in August
The English Premier League continues to postpone indefinitely and puts Burnley at risk of bankruptcy in August. The Premier League postponed the competition, causing a series of clubs to face bankruptcy due to no income. Burnley is the first team to speak publicly about this situation and certainly many other teams are in the same situation.
Accordingly, in the worst case, if the Premier League is canceled, Burnley could lose £ 50 million. This includes TV royalties and ticket sales on home turf. This makes the coach Sean Dyche’s club no longer able to pay the players and staff salaries.
President Mike Garlick shared that, the club will really disband in August if the Premier League is not soon reorganized. According to him, this is not only a risk for Burnley, it is also a vital condition for teams and companies benefiting from English football.
Clubs will be paid in advance to the clubs to keep them running
However, this concern has now been eased after the tournament organizers reached an agreement with 20 clubs. As such, these clubs will be paid in advance for a portion of the bonuses which they will normally receive at the end of the season. Teams competing in each season will receive a bonus based on the final position on the table, but that money always includes a “hard” amount that will certainly pay regardless of the position of the clubs.
According to The Times, the money will be paid in advance to the clubs to keep them running during the epidemic season. The total prize money is around £ 125 million, but The Times also said clubs will not receive the same amount because in addition to this, they also receive additional infrastructure fees paid by the Premier League for installation television program production system.
As a result, big clubs like the top 6 teams (Liverpool, MU, Man City, Arsenal, Chelsea, Tottenham) or other teams with matches reported more directly will receive more money than the rest. Small teams, therefore, will still face financial deficits.
This amount, of course, is not enough to save a club from bankruptcy if the pandemic lasts for half more years, so the Premier League organizers can only hope that this amount will help the club last a quarter. . They are also negotiating further with the British government to resume competition in early June if the epidemic subsides.
The COVID-19 pandemic caused all sports activities to be frozen, including football. In the Premier League, after an online meeting with representatives of 20 clubs, the organizers decided to postpone the tournament indefinitely instead of re-starting in early May as originally planned.
Until the games can return, everything needs to be absolutely safe to avoid the spread of disease that is raging in the UK as well as across Europe. However, this also unintentionally pushed clubs with modest financial resources like Burnley on the brink of disintegration and bankruptcy.
The more unlucky for Burnley, this is the season they are playing very well and full of competition opportunities for the ticket to attend the first European Cup in the history of the team, even completely dreaming about the Champions League.
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