EFL Championship is near collapse as half the clubs will reportedly have no wages for April. The pandemic crisis has hit almost all European leagues, but also championships outside the European continent. The Netherlands and Belgium have canceled their championships, with five major European leagues measuring losses in the hundreds of millions of euros.
While rich Premiership clubs will somehow survive the season, those in the EFL Championship are threatened by a financial crisis. It is not likely to be easily extracted. Financial experts have been warning for years that this league is financially unsustainable. The ongoing race to the millions offered by the Premiership often results in high costs. Those who fail to qualify for the Championship have a heavy loss.
Qualifying for the Premiership with numerous other league clubs guarantees at least three years of a peaceful life. Even if they don’t spend a lot of time in the first league, the clubs will receive a minimum of £ 100 million. The next three seasons will receive parachute payments. Or tens of millions of pounds to mitigate the loss of revenue from Premiership time. Did you know that the entire TV Rights Championship earns as a one-club releasing from the Premiership?
The clubs at the bottom of the Premiership table receive around £ 100 million in TV rights. The entire EFL Championship splits about 119 million per season. Last season, Leeds United made the most money from TV rights. The club was paid nine million pounds. Leeds is one of the clubs with a better soccer 10 score.
What will happen to the EFL Championship?
Leeds United is one of the few examples of a viable club in another English football league. Last season, they spent more than 90% of their budget on expenses. Thanks to that season they ended up in a slight plus, which cannot be said for other clubs.
The Reading Football Club spent 193% of its revenue on expenses last season. That means they ended the season in minus. Sheffield United, Norwich are the clubs that entered the Premiership last season. The investment they had was mitigated by entering the first league.
Of the 24 clubs in the league, 23 are at a loss, with Blackburn having the hardest time. This football club lost £ 20m last season, and they didn’t have expensive players. The English Clubs Association has decided to help with £ 50million to second league clubs. Help has also been announced by the Premier League.