EPL revenues soar but clubs still suffer losses

News


20 Apr, 2017

EPL revenues soar but clubs still suffer losses

The 2015-16 football season saw Premier League clubs post record revenue growth but a rise in costs meant that teams in the top-flight of English football struggled to make profit for the first time in two years.

"The game's gone mad" - a common football phrase nowadays and an appropriate term to denote the game's multi-billion-pound franchise. According to Sports Business Group Deloitte, last season's 20 top-flight English teams saw their revenues grow by almost 10% to £3.6bn. The two Manchester clubs were alone responsible for more than half of that rise.

The head at Deloitte, Dan Jones said: "Increased distributions to clubs competing in Europe, under the new UEFA broadcast rights cycle - notably Manchester City, who reached the semi-finals of the UEFA Champions League - also contributed to Premier League clubs' revenue growth".

However, this was still not enough to offset the rise in expenses as a mixture increased player expenditure, operating costs and one-off charges resulted in combined pre-tax loss of £110m.

Despite this, Mr Jones only sees this as a minor blip in what it is a highly lucrative profession and expects this season to return to business as usual. He said: "We fully expect that the Premier League's new three-year broadcast rights deal will see a return to record levels of profitability in the 2016/17 season".

Thanks to the effects of the new television deal with Sky and BT, which kicked off last August and is worth a record £5.136bn for live Premier League TV rights over three seasons, overall league revenues are set to be even higher in this season.

The following statistics were compiled by Deloitte Analysis and the figures are subject to rounding:

Premier League 2015-16 in numbers (2014-15 in brackets)

•    Revenues - £3.6bn (£3.4bn in 2014-15)

•    Wage costs - £2.3bn (£2bn)

•    Other operating costs - £900m (£800m)

•    Operating profit - £500m (£500m)

•    Net player trading - £400m (£300m)

•    Other costs - £200m (£100m)

•    18 clubs made an operating profit

•    12 clubs made a pre-tax profit

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