Wednesday, 12 July 2017

English football scores revenues of £4.4bn in 2015-2016

The 92 Premier League and Football League clubs generated a record £4.4bn (€4.9bn/$5.7bn) in 2015-16, according to professional and financial services company Deloitte, as the English game further strengthened its position against its rivals in Europe.

The combined revenues of the 20 top-tier Premier League clubs rose by nine per cent to a record £3.6bn in 2015-16, the final year of the competition’s three-year broadcast cycle. Deloitte noted that each club generated more on average (£182m) than all 22 First Division clubs combined earned in 1991-92, the final season before the introduction of the Premier League.



Deloitte’s 26th Annual Review of Football Finance predicted that Premier League clubs’ combined revenues are likely to exceed £4.5bn in the upcoming 2017-18 season.

Broadcast revenue for 2015-16 (£1.9bn) accounted for more than half of Premier League clubs’ total revenue, while total capital expenditure by Premier League and Football League clubs rose by three per cent to a record £313m. Premier League wage costs increased by 12 per cent to £1.3bn, although clubs still recorded a third consecutive season of operating profits in excess of £500m.

While the Premier League is the honey pot, Championship clubs are showing record spending levels in a bid to get there. That spending is part fuelled by overall revenues increasing to a new record level of £556 million in 2015/16 – a rise of 74% in the last decade.

However, Deloittes point out this is the third time in the last four years clubs spent more on wages (£561 million) than they generated in revenue.

“With clubs standing to earn a revenue uplift of at least £170 million from promotion to the Premier League, rising to over £290 million if they survive one season, Championship clubs continue to be tempted to spend excessively relative to their revenues, particularly on wages,” said Adam Bull, Senior Consultant in the Sports Business Group at Deloitte.

Deloitte’s report also noted that European football market revenues reached almost €25bn in 2015-16, a 13-per-cent increase on 2014-15. The company said the increase was driven by continued growth in broadcast rights values in Europe’s biggest leagues and the impact of the Uefa Euro 2016 national team tournament.

The collective revenues of the top five European leagues – the Premier League, Spanish LaLiga, German Bundesliga, Italian Serie A and French Ligue 1 – grew by €1.4bn to a record €13.4bn in 2015-16. Total Premier League net debt fell for the third year in a row by £125m to £2.2bn at the end of the 2015-16 season.English football scores revenues of £4.4bn in 2015-2016

The 92 Premier League and Football League clubs generated a record £4.4bn (€4.9bn/$5.7bn) in 2015-16, according to professional and financial services company Deloitte, as the English game further strengthened its position against its rivals in Europe.

The combined revenues of the 20 top-tier Premier League clubs rose by nine per cent to a record £3.6bn in 2015-16, the final year of the competition’s three-year broadcast cycle. Deloitte noted that each club generated more on average (£182m) than all 22 First Division clubs combined earned in 1991-92, the final season before the introduction of the Premier League.

Deloitte’s 26th Annual Review of Football Finance predicted that Premier League clubs’ combined revenues are likely to exceed £4.5bn in the upcoming 2017-18 season.

Broadcast revenue for 2015-16 (£1.9bn) accounted for more than half of Premier League clubs’ total revenue, while total capital expenditure by Premier League and Football League clubs rose by three per cent to a record £313m. Premier League wage costs increased by 12 per cent to £1.3bn, although clubs still recorded a third consecutive season of operating profits in excess of £500m.

While the Premier League is the honey pot, Championship clubs are showing record spending levels in a bid to get there. That spending is part fuelled by overall revenues increasing to a new record level of £556 million in 2015/16 – a rise of 74% in the last decade.

However, Deloittes point out this is the third time in the last four years clubs spent more on wages (£561 million) than they generated in revenue.

“With clubs standing to earn a revenue uplift of at least £170 million from promotion to the Premier League, rising to over £290 million if they survive one season, Championship clubs continue to be tempted to spend excessively relative to their revenues, particularly on wages,” said Adam Bull, Senior Consultant in the Sports Business Group at Deloitte.

Deloitte’s report also noted that European football market revenues reached almost €25bn in 2015-16, a 13-per-cent increase on 2014-15. The company said the increase was driven by continued growth in broadcast rights values in Europe’s biggest leagues and the impact of the Uefa Euro 2016 national team tournament.

The collective revenues of the top five European leagues – the Premier League, Spanish LaLiga, German Bundesliga, Italian Serie A and French Ligue 1 – grew by €1.4bn to a record €13.4bn in 2015-16. Total Premier League net debt fell for the third year in a row by £125m to £2.2bn at the end of the 2015-16 season.

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