Premier League sees record revenues, wages
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Premier League clubs saw revenues top £1.5bn for the first time, according to Deloitte’s Annual Review of Football Finance.
The report said that England’s top flight now generates more revenue than other league across the three primary revenue categories: matchday, broadcast and commercial. However, the increase in revenue does not necessarily mean improved profits, as clubs spent the most on players’ wages since the league began.
A spokesperson for Deloitte, Dan Jones, said: “Domestic popularity, investment in facilities and global reach continue to drive revenue growth for Premier League clubs. The top 20 clubs reported revenues of over £1.5bn for 2006/07 and we estimate this will have increased to £1.9bn for the 2007/08 season just ended.
“So far, there is little evidence that the clubs are translating this revenue boost into improved profits,” he continued. “The record amounts of spending on wages and player transfers were such the operating profitability declined in 2006/07.”
Teams spent 13 per cent more on wages in 2006/07, compared to the 11 per cent increase in revenue.
Chelsea and Manchester United had the highest wage bills (of £132.8m and £92.3m respectively), but Reading showed the biggest increase in wages with a massive 109 per cent jump to £29.8m.
Jones said that increased television revenues in the season just ended will have improved profitability, but the exact bottom line result would depend on the “degree of spending restraint displayed by clubs”.
The aggregate operating profits of German Bundesliga clubs in 2006/07 of £168m exceeded the Premiership for the first time, with its aggregate of £95m. However, the Premier League’s £1.5bn revenue left the Bundesliga (£0.9bn), Spain’s La Liga (£0.9bn), Italy’s Serie A (£0.8bn) and France’s Ligue 1 (£0.7bn) in its wake.
Photograph: Chelsea spent more on wages than other club (Credit: www.actionplus.co.uk)
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