If the Premier League cannot continue, possibly, Burnley will go bankrupt in August.
Burnley will go bankrupt if the Premier League 2019/20 is canceled
The COVID-19 epidemic is preventing the Premier League from returning as expected. In the latest announcement from the tournament organizers, the highest division of the UK is postponed indefinitely. This is also reasonable as the UK has more than 40,000 cases of COVID-19, including more than 4,000 deaths by 19h on April 5.
Currently, the English Football Federation (FA) has pledged to resolve to end the 2019/20 season by playing the remaining 9 rounds. However, the fact the tournament has never been continued will still make people nervous. The British press is still constantly giving comments demanding cancellation of many sides.
The cancellation is difficult due to TV copyright issues. The broadcasters have spent billions of pounds to buy broadcast rights and do not play the last 9 rounds will make FA pay huge amounts of compensation. Not only that, but the cancellation can also cause some Premier League clubs and Burnley to go bankrupt.
We will run out of money in August if the season is canceled. That’s why we are so determined and vote to keep the season going. That is the best way for teams in the Premier League “.
Burnley also announced on the club homepage, revealing the team would lose a total of £ 50 million if this season were not over. “The team will lose £ 5 million if the remaining home games of the season are not played or are played without an audience.
In addition, Burnley is at risk of losing £ 45 million paid from the Premier League organizers from television rights. “Currently, Burnley is 10th in the rankings and almost certainly relegated when more than 12 points compared to the “hold the red light” group.
Meanwhile, the Premier League specifies which team will go bankrupt and will be dropped to the lowest rank whether there are enough relegation points or not. Therefore, it would be unfair for Burnley if they went bankrupt because the season was canceled or ended early and this team may not be the only case in the Premier League.
Liverpool was “stoned” by the public for circumventing the COVID-19 season law
Liverpool, Tottenham and a number of other Premier League clubs have been criticized for circumventing the COVID-19 season financial law.
Liverpool has become the latest English football club to find ways to avoid paying its employees by viewing their non-working time as a leave of absence. This is thought to be a solution to avoid financial losses during the COVID-19 pandemic season.
Premier League clubs are facing a lot of financial damage from the pandemic, which is estimated to be up to £ 100 million per club (not including other financial constraints such as TV copyright fines if the season does not is complete). And so this situation does not last, some teams like Newcastle, Tottenham, Norwich, and Bournemouth have applied the above solution.
Liverpool also applies this solution with about 200 employees working for the club, according to which their wages will be paid at the rate of 20% from the club budget and the remaining 80% comes from government funds. Liverpool has confirmed the club staff will receive wages on time during the postponement of the season.
The Independent reporter Melissa Reddy expressed frustration that the Liverpool owner had assets worth £ 2 billion but still relied on government taxes to pay wages.
Not only football clubs but also businesses and large corporations in the UK are being criticized for taking advantage of government funds. The millionaires and billionaires owning businesses operating in the UK are said to find quite a lot of ways to avoid having to assume part of the financial responsibility during a pandemic that affects every aspect of society.
Not only for Burnley suffering losses, but the solution of Premier League clubs also causes the Professional Football Association (PFA) to call on the players not to rush to agree with the salary reduction proposals. They said that if the owner of the clubs did not set an example, there was no reason for the players to suffer to save salaried employees who were not their employees.
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