According to a study, half of the clubs have only six months of cash flow in the face of the crisis

Amateur, professional and leisure clubs: the race against the clock anguishes the world of sport. To hold out despite the crisis due to Covid-19, one in two structures only has a cash reserve less than or equal to six months, according to the latest study by the Social Council of the Sports Movement (Cosmos), an employers’ union bringing together some 5,500 structures.

Consulted by The world, the summary was carried out on the basis of 1,769 responses, the vast majority from structures with less than seven full-time equivalents: above all amateur clubs with at least one employee (90.4%), but also professional clubs (3.3%), or commercial sports leisure companies (6.3%) – the survey therefore overlooks non-employer amateur clubs, which represent the majority of associations.

Important clarification: these results were stopped on November 16, on the eve of the government’s announcements, which presented aid estimated at nearly 400 million euros for the various components of sport.

Article reserved for our subscribers Read also Pass’Sports, resumption of activity, return of the public: Emmanuel Macron wants to reassure the sports world

For many structures, cash reserves only allow for a quarter or less (24.18%). Half (52.02%) have only six months or less of cash flow. Conversely, a minority (9.33%) has sufficient resources to last beyond a year.

In mid-November, two weeks after the reconfinement, nearly three quarters of structures still resorted to partial unemployment (72.2%). On the other hand, very few (6.34%) have already requested a loan guaranteed by the State, another support mechanism already in place, in March, for the first confinement.

Layoffs, PSE …

For nearly a third of the structures (28.36%), the estimates of annual budget or turnover losses are already greater than or equal to 30% At the other end, 16% of respondents expect losses of less than 10%.

If the situation does not improve by the end of 2021, 22.46% of companies are today unable to formulate the slightest prognosis. A minority already plans to file for bankruptcy (2.12%), or even a judicial safeguard or reorganization procedure (1.5%). Others already fear a reduction in the workforce (14.06%) or redundancies for economic reasons within the framework of so-called “job protection” plans (4.64%). Still others, a reduction in the working hours of employees (16.66%).

For now, only a third (35.2%) of structures say they can consider maintaining extracurricular sports activities during the current reconfinement. Since October 30, this type of activity is one of the few still authorized for amateur sport, as well as the practice of sport on prescription or for people with disabilities.

Three days earlier, on November 13, the French National Olympic and Sports Committee (CNOSF) had published the provisional results of another study, still being analyzed. On the basis of 36,000 clubs (out of some 158,000 associations attached to a federation), the sports movement is already seeing a loss of 376 million euros from one year to the next: 260 million loss of contributions, in due to an impressive drop in the number of licenses, and 116 million of other kinds (grants, partnerships, ticketing).

Read also The fall in the number of licensees weakens French sport

You might also like

Comments are closed.