Premier League Revenue Reaches Over £3bn For First Time

03 Jun 2015 | sigadmin

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A survey conducted by Deloitte has revealed that Premier League clubs have generated a record £3.26 billion combined revenue during the 2013-14 season. The revenue soared by 29% with clubs making pre-tax profits of £187m for the first time since 1999.

Recently agreed domestic broadcast rights deals from 2016-17 to 2018-19, combined with the introduction of financial fair play rules to limit the increase in wages that could be paid from the additional TV money are partly responsible for the top flight’s revenue boost. Accounting for 54% of the league’s total revenue, the current broadcast revenue stream is the highest proportion from any revenue stream in the history of the Premier League.

Deloitte’s Annual Review of Football Finance also revealed that the Premier League surpassed the Bundesliga as Europe’s most profitable league. Despite suffering their worst campaign in Premier League history, Manchester United still generated a record operating profit of £117 million, with Tottenham Hotspur recording their highest pre-tax profit of £80 million.

Dan Jones, partner in the Sports Business Group at Deloitte, commented: “Premier League clubs showed relative restraint in terms of wage costs, with less than 20 per cent of their revenue growth being absorbed by wage costs.

“The current broadcast deal also comes as cost control regulations, at both domestic and European level, have caused many clubs to rein in their spending relative to the revenue they are now capable of generating.

“The end result has been a remarkable turnaround in profitability…on a continental level, it is difficult to see any of the other ‘big five’ European leagues closing the gap in the near term, let alone catching up with them.”