In the News

Coronavirus: Football clubs face financial stress

Graham Watson

15th March 2020

This article would make a good extension exercise - can you draw what has happened to the cost and revenue curves of a lower league football club?

For most clubs, costs will have fallen at the margin, with the cost of hosting fixtures having disappeared for the foreseeable future. Unfortunately, for many clubs, the major cost is wages, and they will still need to be paid - unless, of course, you're my club, Macclesfield Town, where the owners appears not to abide by such norms - and revenues will have collapsed.

Worse still for small clubs, any insurance policy that they have is unlikely to cover them in the event of a public health crisis like this one, as the Chairman of Rochdale has made clear. Tough times ahead for football clubs.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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