Major concern grows as Premier League clubs face £750m+ TV hit, ‘civil war’ touted over wage cuts

As the coronavirus crisis continues to grip the world, there is growing concern over the impact on the Premier League moving forward.

Naturally, the safety of the public and preservation of life are the priorities for all concerned at this stage as sporting events have all been cancelled and put on hold until the situation improves.

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However, it may not be as simple as suggesting that everything must wait and will be sorted out at a later date, as the suspension of the season could have significant ramifications.

TV rights issue

According to the Mirror, Premier League clubs face having to pay back £750m in TV rights if they are unable to finish the season, and while that will leave some with a gaping hole in their books, it may even be enough to put others in serious financial trouble given the magnitude of the fee and the importance placed on that particular revenue stream.

It’s noted that foreign TV deals make up £4.35billion currently, just behind £5billion in domestic rights. While the fear is that the foreign deals could go first, with Canal Plus in France informing the top two divisions that they will not pay the £100m due as the next instalment for TV rights given no games are being played, it could set a dangerous precedent.

Wage cuts debate

Meanwhile, that isn’t the only major issue that clubs are currently facing, as amid a heated backlash towards the likes of Tottenham and Newcastle Utd after they opted to use the government’s furlough scheme to cut wages for non-playing staff, there is still uncertainty over what will happen with player salaries.

As per the Mirror, Premier League clubs are working to get teams to sign up to a collective bargaining agreement, but the PFA has told its members not to accept cuts yet.

That has in turn has led to a ‘civil war’ being touted in the report, with talk of cuts, deferrals and other solutions still being on the table as the relevant parties try to reach the best solution.

Time will tell what that will be, but forcing non-playing staff to take a financial hit while the players continue to earn a full wage is certainly not the best way to deal with the situation and so patience will seemingly be required for them to agree on a satisfactory alternative plan.