Premier League clubs are set to face a £1 billion reduction in their 2019-20 revenues due to the coronavirus pandemic, research from financial firm Deloitte has found.
England's top-flight, which is set to resume behind closed doors on June 17, faces a significant financial challenge and operating losses after clubs posted a record £5bn in revenues last season.
The financial firm's research showed that Europe's five major top-flight leagues in England, Spain, France, Italy and Germany generated a record £15bn in revenue last season, but that the interruptions caused by the virus would greatly impact this year's revenues.
Deloitte said that half of the Premier League's reduction in revenue, due to rebates to broadcasters and a loss of matchday revenue, will be "permanently lost." The remaining £500 million will likely be deferred, depending on the go ahead of the 2021-22 season.
The firm also said clubs should introduce an internal salary cap based on 70% of their revenue to ensure their long-term future.
"You've got 107% of revenue going out on wages. You can see the problem looming," Deloitte's Dan Jones said in a statement.
"A salary cap is a blunt instrument, but if you can only spend 70% of revenue on salary, and applied that in 2018-19, you take £300m out of the wage bill and wipe out the losses."
Last month, Manchester United executive vice-chairman Ed Woodward said that the club is facing one of the most challenging periods in the club's history because of the pandemic. The comments came after United's third-quarter financial results revealed debt increased 42.2% to £429m.