The losses in gate receipts and pro-rata TV money, which is what will happen in the worst case scenario, has been negated in one swoop by the sponsorship for first option naming rights on our potential new stadium. This is before we consider what other sponsorship deals the richest man in English football and his world leading accountant, both of whom are increasing there wealth at this time, have lined up for us in the future.
Also, as a club which has a very low match day gate receipts revenue and we get mid table TV money for this league which has been an issue in the past but right now means we aren't as effected as others, particularly if FFP does get relaxed.
Certain clubs have get receipts bringing in almost £100 million more per season than us. They get massive amount of European money. They are TV week in week out, they have huge amount of tourists visiting every match day and buying from their club shops. They have huge sponsorship deals, many of which are performance related. If we are being impacted, which we will be, it will be a lot less than everyone else around us.
There's a club losing £9 million per week, our loss will be at most 500k per week worst case scenario over a full season.
Football wise, this situation isn't good for anyone in isolation but as a club in this league, we'll come out of it a lot better and IMO will be in a lot stronger position for it than every other club in this league.
It seems to be mainly Liverpool fans struggling with these concepts. They seem to think because everyone loses money, they all lose money equally so the same hierachy is kept. Recessions in general don't do that. They are uneven and generally mess up the existing structures.
It's a bit patchy, but essentially 6 clubs rely more on sponsorship and gate receipts. The deeper the recession gets, and the longer grounds are shut the worse it gets for them. 14 clubs rely on TV revenue. If football keeps going ahead, even in empty grounds, and in a wider recession, it benefits those clubs. I bit of a simplification, but essentially true.
It is why Everton are very keen for it to move forward, and really not massively bothered about empty grounds. As a business, it's not that important. We would lose in 1 months games from Sky, what we would lose in a seasons games across a season.
In all honesty, I don't think people are as yet grasping the nature of the recession we are heading into. Lots of LIverpool fans are just assuming it blows over quickly. There is an assumption because they were well ran pre recession, those same businesses practices mean they are well prepared for the recession. They are not. They are probably the club who have gambled the most on the continued growth in revenues (favouring big contracts, with long deals on high wages, in the hope they gain transfer value).
Retail spending was down 80% last month in America. Right at this moment, Addidas, Nike, Reabok etc are all having crisis meetings, where it's being spelt out to their people in marketing and procurement that savings will have to be found. Outsourcing will be scrapped, and frankly massive sponsorships will become challenged. It will just be a very quick dictat, either secure a massive reduction or terminate it.
Contracts are never water tight (as New Balance have found) but when you've essentially breached contracts in a range of ways (no games, games out of season, empty stadiums, commencing the contract late) you haven't really got a leg to stand on.
As a final aside, more broadly-the league will become more even. I did a quick exercise in placing certain reductions in income, and I suspect we are moving from a period where the turnover gap from biggest to smallest will have gone from 5 times to around 3 times (depending on how severe you feel commercial revenue is hit). That is assuming all European monies are paid too, for both last season and next season-which given where we are looks highly unlikely. Again with UEFA, if the CL doesn't get finished, expect 50%+ of the prize money to drop (as a best case scenario). They may recoup no money, or minimal amounts which they use to pay their own staff with minimal left for clubs.
Ironically the desire to void this years competition is about as stupid demand as you can get for Liverpool fans, who are waiting nervously on about £80million due.