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Lacy journalists are running polls every day, asking fans if we should sign Angel Rangel, Grant Hall and other out-of-contract players. The questions are impossible to answer. The only responsible action of any EFL club right now is to bin any idea of new signings. The uncertainties surrounding future revenues are so severe that the only sensible thing is to look hard at all sorts of cost cutting, and not spending a second thinking of new signings. Survival is paramount and right now should be the only focus.
A football club have five sources of income. All are under threat:
Luckily, we have lots of good youngsters, and it is a fantastic opportunity for players such as Owens, Smyth, Shodipo, Dalling, Gubbins etc to stand up, and for long term fringe players that are still contracted, such as Kakay and Hämäläinen, to get a chance. I think we are in a better situation than many other clubs that cannot rely on the same quality and quantity of youngsters.
A football club have five sources of income. All are under threat:
- Media revenue: If all matches are put on hold there are no TV revenue. Football might resume during summer, but we cannot rule out that matches might not resume before late this year. If the number of matches next season need to be drastically cut, i.e. by teams playing each other only ones, the Championship being split in two regional divisions and/or all cup matches dropped, it is unlikely the TV companies will not look for significant reduction in payments.
- Match day revenue: If the season resumes it is likely to be played behind closed door for quite some time. More people will pay for streaming services, but this will only compensate for a limited part of the losses.
- Commercial revenue: If matches will be played behind closed doors or if less matches will be played, the commercial revenues, such advertising space and sponsorships will diminish.
- Sale of players: I cannot see that many Championship clubs will be left with any transfer fee budgets. Premier League clubs will, but if the lock down continues for a long time, the TV companies, which provide 80%+ of the Premier League revenue, will demand significant cuts. With exceptions of a few top clubs, most clubs will cut their budgets, and this will reduce demand and reduce value of players such as Eze and BOS.
- Subsidies: Many owners will find themselves in a more difficult financial position, if their income derives from industries such as air travel, leisure, oil, steel, cars etc. Fewer owners will accept to keep subsidizing football clubs and will demand that clubs try to balance the books.
Luckily, we have lots of good youngsters, and it is a fantastic opportunity for players such as Owens, Smyth, Shodipo, Dalling, Gubbins etc to stand up, and for long term fringe players that are still contracted, such as Kakay and Hämäläinen, to get a chance. I think we are in a better situation than many other clubs that cannot rely on the same quality and quantity of youngsters.
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