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Premier League fans still remember the disruption of their favorite league’s 2019/20 season due to COVID-19. However, despite this forced break, the Premier League managed to contribute £7.6bn to the UK economy in the 2019/20 season overall, according to a new report published by professional services firm Ernst & Young (EY).
Based on the economic and social impact report commissioned by the Premier League, the league and its clubs generated a total tax contribution of £3.6bn to the UK Exchequer in 2019/20. Of this amount, £1.4bn was attributable to players, primarily through their income taxes and national insurance contributions.
Further, the league’s operations also supported almost 94,000 full-time equivalent (FTE) jobs across the UK in 2019/20. The study also claimed an increase of 840% (440% in real terms after adjusting for inflation) in the league’s economic contribution to the UK GDP since the 1998/99 season.
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Unmatched viewership figures and trickled-down financial benefits
A testament to the growing popularity of the Premier League, the study also reported the league’s cumulative global viewership at a mammoth 3.2 billion people, double that of the UEFA Champions League. This was well-reflected in the league’s international broadcast revenues for the season, which stood at a towering £1.4bn. This figure easily accounted for the largest share of the UK’s audiovisual exports and nearly matched the combined total achieved by the BBC, ITV, Channel 4, Channel 5, Sky, etc.
The Premier League’s immense popularity had a trickle-down effect on all clubs involved in the football pyramid in England and Wales in very real, sizable monetary terms. The league supported a total of 138 clubs from the English Football League (EFL) and National League overall via parachute and solidarity payments, contributing a total of £455mn, i.e. 15% of 2019/20 central revenue to support the lower-tiered leagues and local communities.
In response to the pandemic, the league made advance payments of £125mn available to the football pyramid in 2019/20 and underwrote a financial package to the EFL, with a commitment that no EFL club would go out of business due to the pandemic in the 2020/21 season.
A further £250mn Covid-relief package was also agreed with the EFL in November 2020. This saw £50mn being made available to EFL League One and Two clubs, and an interest-free loan facility of upto £200mn that EFL Championship clubs were able to utilise.
The report estimated an overall loss of £1.3bn in broadcast and matchday revenue in 2019/20 and 2020/21 due to COVID-19 playing spoilsport by forcing a halt to the league and Premier League games later being played behind closed doors.
Commenting on the report, EY UK Chief Economist Peter Arnold said:
"This report looks at the effect of the activities behind those moments and highlights the significant growth in the League's impact since EY's first impact assessment of the League and its clubs in 2013/14."
With regards to the league’s immense popularity, he also added:
"The League's global appeal continues to be a key factor in driving its economic impact, and the League plays a significant role at the heart of clubs' communities. Hundreds of thousands of children, young people and adults benefit from initiatives supported by the League each year and the pandemic has helped pull the role of football within communities across the country into sharper focus than ever before."
Meanwhile, Premier League Chief Executive Richard Masters said:
"This new report from EY shows how we and our clubs continue to contribute significantly to the UK economy and have delivered much-needed assistance to all levels of football and communities at a time when the pandemic brought unprecedented challenges and uncertainty for so many. We are proud of the level of support we provide the football pyramid, as well as the funding of community organisations of clubs up and down the country. The importance of their work has been more evident than ever in recent times, providing help to people who needed it the most."
