Coronavirus impacting Panathinaikos’ chances of overturning European suspension
The coronavirus pandemic could impact Panathinaikos’ chances of successfully overturning the European suspension issued by UEFA in 2018.
Watch LIVE GREEK TV including full GREEK SPORTS coverage with Go Greek TV!
Panathinaikos were hopeful of overturning the European ban imposed on the club by UEFA in 2018. This would have enabled the team to participate in European football as of next season, should the team qualify through the playoffs. However, the recent global outbreak of the coronavirus has not only hampered the plans of football worldwide, but it could also negatively impact the club’s prospects of successfully lifting the ban.
The rapid global developments have led to almost every major football and sporting competition either being temporarily suspended or being played behind closed doors. Naturally, this has created an enormous dilemma for UEFA in terms of what will happen with ongoing competitions such as the UEFA Champions League and the UEFA Europa League. UEFA Euro 2020 was officially postponed until the summer of 2021, as agreed upon by UEFA on Tuesday.
The pandemic is unprecedented, and Europe’s governing body will undoubtedly have greater concerns, but it will also hinder the prospects of clubs in the same predicament as Panathinaikos. Like all other clubs, the Greens will suffer from a loss of revenue in terms of ticket sales and their television rights deal, while being obliged to make payments such as taxes and player wages.
The timing could not be any worse for the Trifylli as they seek to maintain a clean slate of having no new debts and, at the same time, significantly lowering their overall debt. The only ray of hope is the fact that a loss in revenue should not hurt the club’s chances of obtaining a licence to participate in the Greek Super League. Of course, this was one of the major requirements UEFA would look at in terms of lifting the suspension.
Up until now, Panathinaikos have had no issues in meeting their financial commitments, meaning that the licence will likely be granted. However, this global ‘freeze’ will definitely hurt the club. Regular share capital increases have resulted in the debt being drastically reduced. The aim was to be entirely debt-free by next year, however, the television revenue obtained from the upcoming playoffs series was set to play a significant role in further boosting the finances. Should the playoffs not go ahead, it will put a dent in this goal. Consequently, the club has to monitor this development closely, hoping the playoffs will take place. At this stage, it looks like the playoffs will begin in May, however, nothing is guaranteed.
Some good news
On Tuesday, UEFA announced that they will be alleviating the Financial Fair Play (FFP) regulations due to the coronavirus pandemic. With all clubs set to face a financial burden due to the pandemic and postponement of the season, UEFA will be understandings of the clubs’ current situation.
This could in turn prove to be beneficial for Panathinaikos in their hope to overturn their European ban. However, it remains unclear if the change in FFP regulations will outweigh the financial loss sustained by Panathinaikos during the pandemic.
