Deloitte Annual Review of Football Finance: European football market revenue increased 8% in 2023/24 to a record €38 billion

Deloitte Annual Review of Football Finance: European football market revenue increased 8% in 2023/24 to a record €38 billion

• Boosted by increased commercial revenue and stadium developments, the European football market grew by 8% in the 2023/24 season to a record €38bn;
• The ‘big five’ European leagues generated aggregate revenue of over €20bn for the first time;
• Premier League clubs’ revenue hit £6.3bn, with commercial revenue exceeding £2bn for the first time; 
• Championship clubs recorded aggregate revenue of £958m in 2023/24, up 28% on the previous season, driven by the entry of clubs to the league which generated higher revenues than those which exited at the end of the 2022/23 season;
• Women’s Super League clubs reported a 34% increase in aggregate revenue to £65m in 2023/24, as every club reported over £1m in revenue for the first time.

The European football market reported record-breaking revenue of €38bn in the 2023/24 season, a growth of 8% (€35.3bn in 2022/23), according to the 34^th Annual Review of Football Finance, published by the Deloitte Sports Business Group.

The ‘big five’ European leagues – the Premier League, Bundesliga, LaLiga, Serie A, and Ligue 1- generated €20.4bn in revenue, rising by 4% to surpass the €20bn mark for the first time.

According to Deloitte analysis, aggregate club revenue across Europe’s ‘big five’ leagues is forecast to surpass €21bn in 2024/25 before plateauing in the 2025/26 season, largely due to current uncertainty around Ligue 1’s domestic broadcast deal from 2025/26.

Europe’s ‘big five’ reach new heights

Premier League clubs again generated the highest revenue of Europe’s ‘big five’ leagues in the 2023/24 season, reporting aggregate revenue of £6.3bn, a 4% increase on the previous season. This growth was primarily driven by expansion of clubs’ commercial offerings which also led to clubs cumulatively generating more than £2bn in commercial revenue for the first time.

The Premier League’s traditional ‘big six’ clubs reported lower average revenue growth (3%) than amongst the rest of the League’s consistent clubs (11%). This is in part due to the displacement of some clubs from the European stage and the subsequent impact this has on all primary revenue streams.

Premier League clubs’ combined matchday revenue surpassed £900m (£909m) for the first time, rising by £43m (5%). Broadcast revenue saw a marginal 2% increase to £3.3bn in the penultimate season of the league’s three-year rights cycle, despite UEFA distributions to Premier League clubs decreasing in line with on-pitch performance in European competitions.

Overall, Premier League clubs’ aggregate operating profit grew by 36% to over £0.5bn, the highest since 2018/19, due to regulatory scrutiny and sanctions encouraging a better balance between costs and revenue.

Premier League clubs’ net debt reached £3.5bn at the end of the 2023/24 season (up 12% from 2022/23), driven by funding of stadium and facilities expenditure, as well as the continued investment in men’s playing squads.

LaLiga clubs’ aggregate revenue increased 6% to €3.8bn in 2023/24, with Real Madrid and Barcelona responsible for almost half (48%) of the total. The financial impact of infrastructure investment was clear in 2023/24, with league-wide matchday revenue increasing by 28% (€149m) to €0.7bn. LaLiga clubs’ aggregate broadcast revenue increased 1% to €1.8bn and remained the largest contributor to overall revenue (48%).

Serie A clubs generated aggregate revenue of €2.9bn, a 2% increase on the prior season. This growth was supported by an uplift in commercial revenue (up 9% to €1.0bn), largely driven by the league’s North American-owned clubs’ new sponsorship deals and increased merchandise sales.

Despite Ligue 1 contracting from 20 to 18 clubs at the start of the season, clubs’ aggregate revenue grew by 7% to €2.6bn in 2023/24. This uplift was largely attributable to increased non-recurring distributions from CVC’s €1.5bn investment into a commercial subsidiary of Ligue de Football Professional in 2022, which are recognised by Ligue 1 clubs as revenue, an accounting approach which differs to that seen in other countries. Therefore, aggregate commercial revenue (€1.6bn) accounted for over 60% of Ligue 1 clubs’ total revenue.

Elsewhere, Bundesliga clubs generated €3.8bn in total revenue, down 1% from the previous season. Commercial revenue (€1.7bn) remained the largest contributor (46%) to Bundesliga clubs’ total revenue.

Overall, clubs in the ‘big five’ leagues reported an aggregate operating profit (€0.6bn) for a second successive season, while the aggregate wages/revenue ratio fell from 66% to 64%, despite growth in wage costs in all of the ‘big five’ leagues, except LaLiga.

Tim Bridge, lead partner in the Deloitte Sports Business Group, said: “A focus on stadia development and diversification of commercial revenues led to growth across the European football market in the 2023/24 season. However, clubs and leagues cannot afford to take their eye off the ball as new challenges, including an evolving regulatory landscape and changing fan behaviours, arise.

“The pressure is mounting for more clubs to drive additional revenue at the same time as managing rising costs. Moreso than ever, leaders and owners must recognise the great responsibility they have of managing these businesses, capturing the historic essence of a football club while honouring its unrivalled role as a community asset for generations to come.”

Championship club mix sees revenue approach £1bn in 2023/24

Championship clubs recorded aggregate revenue of £958m in 2023/24, up 28% (£207m) on the previous season, largely driven by the entry of clubs to the league which generated higher revenues than those which exited at the end of the 2022/23 season. The scale and fan following of the clubs entering the Championship contributed to the 52% aggregate growth of Championship clubs’ commercial revenue to £303m, while record league attendances drove matchday revenue to a new high of £210m.

Championship clubs’ aggregate wage costs rose to £892m (2022/23: £709m), reversing the trend of four consecutive seasons of wage costs reductions. However, revenue growth exceeded that of wage costs for a second consecutive season, and only the second time since 2016/17.

Consequently, Championship clubs’ aggregate wages/revenue ratio improved slightly to 93% (2022/23: 94%).  However, for the second consecutive season, all Championship clubs generated operating losses.

League One clubs’ average revenue fell by 7% in 2023/24 to £9.1m, impacted by the departure of two of the highest revenue-generating clubs through promotion. Conversely, League Two clubs’ average revenue grew by 22% to £6.6m. Wrexham (£27m) made up 17% of aggregate League Two club revenue, having generated revenue which more closely resembles that of a consistent Championship club (2023/24 average: £31m).

Bridge concluded: “Championship club revenue may have increased in the 2023/24 season, but continued operating losses paint a mixed picture. As we see sustained investor interest throughout the English football pyramid, long-term strategies must be established to ensure financial stability across the league.

“Now more than ever we are seeing the EFL faced with an incredible growth opportunity to leverage the brand strength of some of its member clubs. With on-pitch drama and dedicated fanbases, the EFL could well deliver an unrivalled experience that engages fans like never before.”

Women’s Super League soars with 34% increase in revenues

Deloitte’s analysis shows that Women’s Super League (WSL) clubs generated combined revenue of £65m in 2023/24, an increase of 34% on the previous season (£48m).

Driven by uplifts in commercial and matchday revenue, every WSL club achieved a double digit increase in total revenue, with all 12 WSL clubs reporting over £1m in revenue for the first time. Average revenue for WSL clubs rose to £5.4m in 2023/24 (up from £4.0m in the previous season).

New forecasts from Deloitte suggest that WSL clubs’ total revenue will reach £100m for the 2025/26 season.

Jennifer Haskel, knowledge and insight lead in the Deloitte Sports Business Group, added: “Through developing more robust fan engagement strategies, strong commercial deals and securing central distributions, WSL clubs unlocked a new phase of growth in the 2023/24 season. Plus, as the reporting and attribution of commercial revenue remains inconsistent between clubs, we may be scratching the surface on the value now being generated by the women’s game.

 “The high-profile investment and innovative brand partnerships announced in recent months demonstrate the value gained when women’s teams are treated as distinct entities with a focus on driving specific initiatives tailored to the fans and commercial partners alike. This mindset must be maintained for the future growth of the women’s game, or we risk missing a generational opportunity in this sport.”

Ends

Note to editors:

Exchange rate

For the purpose of the international analysis and comparisons we have converted the figures for 2023/24 into euros using the average exchange rate for the year ending 30 June 2023 (£1 = €1.16).

Wage costs

Wage costs cover all employees (including players, technical and administrative employees) and include wages, salaries, signing-on fees, bonuses, termination payments, social security contributions and other employee benefit expenses.

About the Sports Business Group at Deloitte

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To date we have advised clients in over 40 countries, across more than 40 sports, providing knowledge and insight to enable transformational change, resolve significant challenges, enhance value, and fuel opportunities for growth.

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