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World’s richest football league gets richer

Premier League earnings hit new heights as clubs enjoyed record revenues of £2.4bn in 2011/12.

Thursday 6 June 2013


World’s richest football league gets richerThe combined revenue of Premier League football clubs has surged to a record high of almost £2.4 billion.

In 2011/12, the revenues generated by the 20 clubs in the English top flight rose by 4%, hitting £2.36 billion overall, according to business advisory firm Deloitte.

And in the years to come the figures for the Premier League are expected to soar further - to £2.5 billion for the year 2012/13 and over £3 billion the following year when new broadcast deals kick in.

Deloitte’s Sports Business Group also reported that revenues increased among England’s 92 league clubs, surpassing the £3 billion mark for the first time.

Rising wage bills
Deloitte’s Annual Review of Football Finance indicates that clubs in the Premier League spent nearly three quarters of their revenue increase on wages, in a bid to attract top players to their teams.

The wages-to-revenue ratio of sides in the top flight remained at 70%, as the cost of their payrolls jumped by £64 million to £1.7 billion.

A global brand
Growing global interest in the Premier League is among the factors which have helped its teams to generate larger revenues, according to Dan Jones, a partner in Deloitte’s Sports Business Group.

He said:
“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 focused among the highest-ranked Premier League clubs, and relatively stable match-day and broadcast revenues.”

Championship boost
Among its wider findings, the business advisory firm revealed that clubs in the Championship - the second tier of English football - enjoyed a 13% jump in revenues in 2011/12, with the figure increasing by £53 million to £476 million.

A changing mix of clubs and parachute payments allocated to those relegated from the Premier League fuelled this growth in revenues.

European record
Looking further afield, the report highlighted that the combined European football market rose in value to £15.7 billion during the 2011/12 period, which also represented a new record.

The revenues of clubs in the Premier League were markedly higher than those seen in other countries. Germany, Spain and Italy trailed behind, with figures of £1.5 billion, £1.4 billion and £1.3 billion respectively.

Ensuring sustainability
With English teams streets ahead of other European nations in terms of revenues, fears regarding the sustainability of its clubs have arisen.

However, steps are now being taken to address these concerns, according to Alan Switzer, director in Deloitte’s Sports Business Group.

He said: “The Premier League clubs have agreed to a system of enhanced financial regulations, designed to improve the sustainability of its clubs.”

Mr Switzer concluded that the successful adoption of the new rules could offer “huge benefits” to the league’s long-term development, when combined with an “imminent boost” in broadcast revenues.


Copyright Press Association 2013

 

Related links

  • Annual Review of Football Finance 2013
    Deloitte’s Annual Review of Football Finance is the only study of its kind, analysing the financial situation of football for the 2011/12 season and providing pointers to future performance.

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