Wages given major portion of increased Premiership revenue

The Premiership revenue reached a record £2.36bn during the 2011/12 season, despite a dip in the economy. According to Deloitte review of football finance, around 75% of the increased income was spent on wages. 92 top clubs of English football reached a revenue of more than £3 billion for the first time.

Dan Jones, who is a partner in the Sports Business Group at Deloitte, said: “Despite operating in a challenging economic environment, English club football’s profile, exposure and increasingly global interest have continued to drive revenue growth for the top clubs. The combined revenue of the Premier League clubs increased by 4% to almost £2.4 billion, with another year of impressive commercial revenue growth, largely focussed among the highest ranked Premier League clubs, and relatively stable matchday and broadcast revenues.”

Adam Bull, Senior Consultant in the Sports Business Group at Deloitte, has predicted that the revenue will increase by 5% to £2.5 billion in 2012/13. “There will be a significant increase of £600m, almost 25%, in 2013/14, with the first season of the Premier League’s new broadcast deals, taking the projected revenue of Premier League clubs above £3 billion for the first time.” he said.

Other key findings of the Deloitte Annual Review of Football Finance 2013 include:

• The total European football market grew to a record £15.7 billion (€19.4 billion) in 2011/12;• Premier League clubs generated the highest revenue (£2.4 billion) of any league in Europe in 2011/12, followed by Germany (£1.5 billion), Spain (£1.4 billion), Italy (£1.3 billion), and France (£0.9 billion);• The Bundesliga remained Europe’s most profitable league with operating profits of £154m, followed by the Premier League, with operating profits of £98m;• The top 92 English clubs invested £188m in stadia and facilities in 2011/12, exceeding £150m annual spend for the fifteenth successive year. In the 20 seasons to 2011/12, English professional football clubs have made in excess of £3.3 billion in capital investments, with 29 club stadia built over this period;• Average league capacity utilisation at Premier League clubs of 95% in 2012/13 was the highest level recorded in Premier League history and the 16th consecutive season above 90%;• Net debt in respect of Premier League clubs was £2.4 billion, consistent with 2011;• The Government’s tax take from the top 92 professional football clubs was around £1.3 billion in 2011/12.

Source: Footballeconomy