The clubs were saved through adjustment measures, savings and subsidies. Recent Economic Research gives clubs praise for agility.
Corona restrictions Norwegianized the Finnish Championships in hockey for a rapid change of direction last season. The restrictions cut the League’s audience from about 1.9 million to less than 300,000, but all the clubs were saved in the period that began with a sudden drop in turnover.
The league clubs survived the financial distress through adjustment measures, savings from matches and subsidies. Based on an independent financial study by the consulting company Ernst & Young, the clubs succeeded quite well in their transfers.
“The clubs had made financially correct decisions before the corona, and the financial numbers were on the rise. Then Korona hit hard, but the clubs managed to adapt really quickly to a situation where the public practically could not get to the halls and ticket sales stopped, ”said EC Financial Management Consultant. [senior manager] Janne Aalto evaluates.
“A year ago, it was thought that not all clubs might survive if restrictions continue throughout the season. Now everyone is still involved. From this point of view, the clubs have done really well in the circumstances. ”
Last During the period, the combined turnover of the league clubs decreased by almost 40 per cent to EUR 69 million. It was lined up with cost savings and subsidies.
The clubs cut staff costs by a total of EUR 10 million and material and service costs by almost EUR 11 million. The total amount of grants and subsidies granted to the clubs is about 11 million euros.
A total of EUR 10.3 million in cost support granted by the State Treasury on the basis of a sudden drop in turnover saved a lot.
“The subsidies have compensated for about a quarter of the financial losses, which has helped keep the clubs in operation,” Aalto confirms.
Club subsidies ranged from seven to 18 percent of the previous period’s revenue. The financially strongest clubs received the most subsidies, as Korona was the worst in terms of turnover. The support was also influenced by the restaurant and event business of the club’s backing companies.
The EC has done visibility to promote economic research on the Swedish SHL League for the last five seasons and the League for the last three seasons. Based on financial statement data and budget data, SHL is about twice the size of the Finnish League and survived last season even better than the League.
“SHL has bigger supporters than the League and a bigger TV contract. Its financial base is more stable, ”Aalto lists Sweden’s advantages.
The SHL teams made a total loss of two million euros last season. The total losses of the Finnish league clubs were eight million.
In the future, clubs will have to reach the audience again, even if the corona situation no longer causes audience restrictions.
“Do people return to the halls as before and do they want the same thing from the event as before,” Aalto ponders with questions about the future prospects of the league clubs.
“Clubs are sure to put pressure on digitization and product development when they consider whether a game alone is enough for viewers or if more is needed. The situation is sure to reflect. ”
The key is to squeeze other sources of income from the brand value of the clubs in addition to the match events.