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

Premier League Revenues Grow But Losses Return

Thu 20th Apr 2017 | Money & Finance

Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm.

Analysis of the financial results of Premier League clubs for 2015/16 shows 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 £0.5 billion (2014/15: £0.5 billion).

The figures come ahead of the next edition of the Deloitte Annual Review of Football Finance to be published in June 2017, shortly after the end of the 2016/17 season.

Dan Jones, partner and head of the Sports Business Group at Deloitte, commented: “The 2015-16 season saw Premier League clubs grow revenues by almost 10% to £3.6bn, with the two Manchester clubs alone responsible for more than 50% of the increase.

“Manchester United’s participation in the 2015/16 UEFA Champions League, coupled with continued strong commercial revenue growth, resulted in a 30% increase in revenue to £515m.

“This saw them top the Deloitte Football Money League for the first time since 2003/04, as the world’s highest revenue-generating club.

“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.”

A combination of 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.

Jones added: “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.”

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 £1.4 billion – eclipsing the previous record set in 2015/16 by one-third and far exceeding any other league in world football.”

Action Images via Reuters / John Sibley

Posted by: Aaron Gourley 

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

Manchester United & City Donate £1m To Emergency Fund

Thu 25th May 2017 | Money & Finance

Manchester’s two Premier League clubs combine to support the city’s fundraising efforts with a £1m donation pledged to the We Love Manchester Emergency Fund set up in the wake of...

Biggest Prize In Football Gets Bigger For Royals and Terriers

Thu 25th May 2017 | Money & Finance

Huddersfield Town and Reading will battle it out for what is considered the most valuable match in world football at Wembley on Monday 29 th May. Promotion to the Premier League for either club will...

3 Observations From Clubs’ Online Merchandise Stores

Wed 24th May 2017 | Money & Finance

Football clubs and their online merchandise stores have been on DiscountIF ’s radar for some time now. After a few sit downs and calls with clubs in the Premier League, Championship and the two...

The DiscountIF Football Merchandise League

Wed 17th May 2017 | Money & Finance

Manchester United. Real Madrid. Arsenal. These are football clubs first and foremost, but they are also some of the most recognised brands around the world. Football clubs are following others...