Premier League football clubs collect record £3.6bn

As the English football season draws to a close, Premier League clubs scored a new record of £3.6bn in revenues last year, but also fell into the red with an aggregate pre-tax loss of around £110m, according to research from Deloitte

The firm says Premier League club revenues rose by 9% in 2015/26 with two clubs – Manchester United and Manchester City – responsible for more than 50% of the increase.

Wage costs increased by 12% to £2.3bn, resulting in combined operating profits (excluding player trading, net interest charges and the amortisation of player contracts) of £500m, the same as in 2014/15.

However, a combination of the increased wage costs, increased amortisation charges, arising from Premier League clubs’ then record transfer expenditure in the summer 2015 transfer window, and £110m of exceptional costs, resulted in an aggregate pre-tax loss of around £110m in 2015/16; the first combined pre-tax loss since the 2012/13 season.

Dan Jones, partner and head of the Sports Business Group at Deloitte, said: ‘Our analysis reveals a return to pre-tax losses, following two consecutive years of pre-tax profits. However, it is worth noting that this is due to a small number of one-off “exceptional” costs, and we fully expect that the Premier League’s new three-year broadcast rights deal will see a return to record levels of profitability in the 2016/17 season.’

Manchester United are top of the Deloitte Football Money League for the first time since 2003/04, as the world’s highest revenue-generating club. Participation in the 2015/16 UEFA Champions League, coupled with continued strong commercial revenue growth, resulted in a 30% increase in revenue to £515m.

Jones said: ‘Increased distributions to clubs competing in Europe, under the new UEFA broadcast rights cycle – notably Manchester City, who reached the semi-finals of the UEFA Champions League – also contributed to Premier League clubs’ revenue growth.’

Adam Bull, senior consultant in the sports business group at Deloitte, said: ‘We have already seen to some extent the impact of the current broadcast rights deal, with clubs’ combined transfer expenditure over the course of the 2016/17 season reaching almost £1.4bn – eclipsing the previous record set in 2015/16 by one-third and far exceeding any other league in world football.’

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

View profile and articles

Be the first to vote

Rate this article

Related Articles