One of the effects of coronavirus pandemic is an impending economic meltdown worldwide. In France, French Ligue 1 is facing a hard time as many clubs plying their trade in the league risk bankruptcy without getting aids and funds from the state. Also, reports have shown that the management of the French professional league has lost an estimated €500 to €600 million to the crisis. The reason for this is not far-fetched, amongst other things, the spread of COVID-19 saw the suspension of all activities since the 13th of March 2020, thereby affecting its major source of income like never before.
With little or no income coming in, these clubs still have to honor their contracts with players and members of staff among other unavoidable expenses. As such, some French Ligue 1 clubs have bankruptcy staring them in the face.
Ligue 1 Clubs Facing Bankruptcy Because of Coronavirus
Lille Olympique Sporting Club
The three-times French Ligue 1 champions happen to be on the long list of European top clubs going through financial hardship during the pandemic. As a matter of fact, several media outlets in the country, including Le Parisien reports that the club loses roughly €250 million monthly despite a consensus agreement in the reduction of wages by first-team players and some non-playing staff.
It is widely known that the French government through Ligue de Football Professionnel, the governing body in charge of professional football leagues in France, supports a majority of these clubs in Ligue 1 with financial assistance from revenues gotten from TV rights, sponsorship deals, and ticket sales. Thus, the halting of matches indefinitely has deprived most of these clubs of these benefits.
Football Club de Nantes Atlantique
The Loire-Atlantique based club is an eight-time winner of the French Ligue 1 title. Nantes is said to be in a financial crisis and might be heading for an economic meltdown if stringent measures are not put in place. Despite rumors suggesting the club may file for bankruptcy soonest due to the pandemic, its Polish-French businessman owner Waldemar Kita in mid-April revealed the club was in perfect financial health; even though he admits that the proposed closed-door matches when the league finally resumes will result to the loss of lots of revenue.
However, the multimillionaire is hopeful that the season will resume in a month or two. By that time, Kita is confident that things will be back to normal for football and the club.
AS Saint-Étienne
Following the need to adhere and continue the lockdown in most parts of Europe, the President of Saint-Etienne’s Supervisory Board, Bernard Caiazzo revealed that should the pandemic lasts for six months, more than half of Ligue 1 clubs including his relegation-bound club are set to file for bankruptcy.
There is no reason to dismiss this disclosure as Caiazzo happens to be involved in the running of the French professional league. He is one of those who oppose the cancellation of the current season, citing that it will lead to a substantial loss of revenue.
Amiens Sporting Club
This is the first Ligue 1 club to adopt a pay cut policy so as to cut the cost of running the club. The 16% pay cut has been reported to take its toll on every employee under the club’s payroll, including first-team players. This stringent measure came on the heels of rumors claiming that most French Ligue 1 clubs may file for bankruptcy if the Covid-19 crisis persists. Hence, this decision must be one of the ways the club ensures it doesn’t go down that path.
See Also: Competitions Suspended, Postponed, Or Cancelled Due To Coronavirus
The Future of Ligue 1 After The Pandemic
In a nutshell, the impact of the coronavirus in Europe’s top-flight leagues could be so disastrous that it will shatter the transfer window in preparation for the 2020-2021 season. In the sense that asides from big-wigs and money bags in the league such as Qatari businessman Al-Khelaifi (owner of Paris Saint Germain), American businessman Frank McCourt (owner of Olympique de Marseille), Rhòne businessman Jean-Michel Aulas (owner of Olympique Lyonnais), and a few others in the league; a majority of the clubs in Ligue 1 may not be able to participate in the transfer market due to scarcity of resources.
It is noteworthy to mention that activities in France may not kickstart anytime soon due to the government extension of lockdown until May 11th.
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