Vegalta Sendai is in serious financial trouble, struck by the double blow of the coronavirus pandemic and frustration over its failure to improve the commercial side of the club despite a decade in the J. League’s first division.
The Tohoku club announced Tuesday that it expects to report over ¥6.6 billion ($6.2 million) in losses for 2020, making it insolvent to the tune of over $3 million.
While many of the club’s financial struggles can be traced to the pandemic, its current situation can largely be attributed to its failure to raise sponsorship revenues over the past decade. Vegalta ranked 19th in the league in sponsorship earnings in 2019, despite having played in the 18-team first division since 2010.