The bank balances of most if not all sports clubs have taken a massive battering and have been decimated over the last 12 months, and for the owners of many of those clubs, well if things do not improve in the next few months some of them may have no other option but to declare bankruptcy.
That is something that no club owner wants to do of course, however with the entire sporting industry bleeding out cash with no money coming into the replace their expenditures, things are certainly looking bleak, and things do need to change quickly if the sporting industry we once new and loved is to return in a way we once took for granted.
As the Top 10 Sports Betting Sites author, Adrian Sterne stated the other day, when online betting companies start to cutback and in most cases stop their sports club advertising and cancel sponsorship deals too, you know there is trouble brewing, and that is something most of them have been doing recently, which does not bode well for the sporting industry at large.
So that does of course beg the question, how are sports clubs going to make up for their lost revenue moving forward, and that is a good question, for without money coming in there is no way in the world any sports club can survive, much more so if they have not had income for a good twelve months or so.
Well, many of them will be hoping their fans will start to return to their sports grounds and stadiums in the months ahead, and many will also be hoping they will start to see the money they got from selling their television resights to broadcast their live events starting to trickle back in.
If not, well cutbacks will have to be made, but let us face it there is not much cash to be saved by most sports clubs for they do have fixed monthly outgoings. One thing some of them may be forced to have to do is to sell off their star players, if they can find a buyer that is.
Increasing Level of Sports Club Debt
The only way that most sports club owners, and this includes both big and small clubs, have been able to survive the pandemic is with a great deal of support from their owners, or by their owners having to take out what in some cases has been a mountain of debt.
With staff and even players have been furloughed, so at the least have had their wages paid during the last year or so, there are still some huge running costs associated with running a sport club of any size, and there have of course been Government backed loan schemes sports club owners could make use of, and many of them have done so.
However, even though the interest rates on those loans may be low, and some of them have been designed in such a way that there may be no repayments due for a year or so, they will ultimately need repaying, and that may prove to be a problem for some club owners for sure.
Whether they will be able to repay those loans or will be tempted or will be required to take on additional lending via one of the soon to be launched Government backed loans remains to be seen, but if they do not repay those loans then that will possibly spell the end of many sports clubs sadly.
Do Your Bit to Help
If there was any doubt as to how the pandemic has had a devastating effect on many sports clubs, you only have to look at just how many of them have already gone to the wall, and if we do not help and support those still in business many more will sadly go to the wall too.
There is something that you personally can do to help the long term survival of any sports clubs or sport teams you support and that will be by attending as many of their up and coming live sporting events as you can do, the price you pay for your tickets to attend those events will help them survive, there is no doubt about that.