Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Football Clubs Generate 4bn In Revenues

Thu 2nd Jun 2016 | Money & Finance

The 92 Premier League and Football League clubs generated more than £4bn in revenues for the first time in 2014/15, according to the 25th Annual Review of Football Finance from the Sports Business Group at Deloitte.

Premier League clubs once again saw record revenues, generating £3.3bn of the total, largely due to the current broadcast rights cycle, which began in 2013/14.

This has helped clubs to record a second consecutive year of pre-tax profits in 2014/15, the first time this has happened since 1999.

In addition, the 92 clubs’ capital expenditure reached £305m, the most ever invested in a single season whilst a £1.5bn contribution to the UK's coffers was paid in tax to the government.

Dan Jones, Partner in the Sports Business Group at Deloitte, comments: “The pace of football’s financial growth in two and a half decades is staggering.

“By half-time of the second televised Premier League game next year, more broadcast revenue will have been generated than during the whole of the First Division season 25 years ago.

“It is particularly reassuring to see that clubs are looking to spend on improving stadia and infrastructure.

“The impact of the Premier League’s broadcast deal is clear to see. For the first time, the Premier League leads the football world in all three key revenue categories - commercial, matchday and broadcast - and this is driving sustainable profitability. When the enhanced new broadcast deals commence in the 2016/17 season, operating profits could rise as high as £1bn.”

In the Championship, combined revenues grew 12% to £548m in 2014/15, exceeding £0.5 billion for the first time. Wage costs rose by 4% to £541m which, despite a reduction in the wages/revenue ratio from 106% in 2013/14 to 99%, means clubs spent almost as much on wages as they generated in revenue.

This remains an unsustainable level of spending without the support of owner funding.  This resulted in operating losses of £225m and a combined pre-tax loss of £191m.

Adam Bull, Senior Consultant in the Sports Business Group at Deloitte, commented: “With promotion to the top flight now worth at least an additional £170m to those Championship clubs not in receipt of a parachute payment, it is no surprise that clubs are doing all they can to put the best talent on the pitch in the hope of reaching the promised land of the Premier League.”

Bull continued: “At the same time, as none of the Championship clubs reported an operating profit in 2014/15 they need to be mindful that profits from player sales or owner funding are likely to be needed if they do not gain promotion.”  

Image:Reuters / Andrew Yates Livepic   

Posted by: Aaron Gourley 

Tripleplay 468 banner V2 (468x60_Animated_v2.gif)
RETURN TO LATEST NEWS SECTION
SUBSCRIBE TO THE FCBUSINESS RSS FEED
 
If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk

To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

30 September: the other deadline day

Mon 18th Sep 2017 | Money & Finance

As of 30 September 2017, all football clubs, sports agencies and their intermediaries will fall within the remit of the Criminal Finances Act. Through this Act, criminal sanctions can be imposed on...

Crystal Palace team up with Twickets in fight against touts

Fri 25th Aug 2017 | Money & Finance

Crystal Palace have partnered with ticket re-sale service Twickets to enable its season ticket holders the opportunity to re-sell their seat for individual games they can no longer attend, at face...

Mats Hummels Joins Juan Mata For Common Goal

Thu 17th Aug 2017 | Money & Finance

Bayern Munich and Manchester United stars unite behind Common Goal #CommonGoal World Cup winner and Bayern Munich player Mats Hummels has become the second footballer to join Common Goal , pledging 1%...

Aldershot Town Gets Financial Support From Council

Tue 15th Aug 2017 | Money & Finance

Aldershot Town Football Club has confirmed that Rushmoor Borough Council has agreed to a package of financial support for the club, including rent and rates relief, until 2021. Following on-field...