Premier League clubs record profit for first time in 15 years

Premier League clubs record profit for first time in 15 years
4.00 6

Published March 26th, 2015 - 15:18 GMT via SyndiGate.info

Rate Article:

 
PRINT Send Mail
comment (0)
Premier League clubs record pre-tax profit for the first time in 15 years
Premier League clubs record pre-tax profit for the first time in 15 years

Premier League clubs have recorded a combined pre-tax profit for the first time in 15 years, according to analysts at Deloitte.

The combined total from all 20 clubs from the 2013/14 season stands at £190 million - almost four times greater than the previous record of £49m set in 1997-98.

Over the last decade, pre-tax losses from Premier League clubs add up to £2.6 billion.

Premier League sides also recorded a staggering £620m at operating profit level - a figure greater than the previous six seasons combined.

“Last season was the first in the Premier League’s current three-year broadcast deal, which was a record breaker when it was struck,” said Dan Jones, partner in the Sports Business Group at Deloitte.

“Combined with strong commercial growth at the highest revenue generating clubs, this has boosted Premier League revenue 29% to a record £3.3bn. However, despite this extra income clubs showed relative restraint in wage costs, which grew by 6% to £1.9bn.

“In the first year of the preceding two broadcast deals, 56% and 81% of respective revenue growth was absorbed by wage costs. This time it is less than 20%. Over the previous ten seasons wages grew by around 9% per year, which is higher than the average annual revenue growth of 7% over that period, demonstrating further what a remarkable turnaround the 2013/14 figures represent.

“The primary aim of a football club is, and always should be, on-pitch success for the fans. However, we do welcome these results, which show that the Premier League clubs are starting to convert their impressive revenue growth into a more sustainable net result.

“With the recent announcement of another record Premier League broadcast deal, the revenue increases show no sign of ending and should make this season’s profit a regular outcome. Such profits provide the clubs with a great opportunity to invest further in their facilities and youth development activities, but will also no doubt make Premier League clubs even more attractive to potential investors than they already were. They can now be reasonably profitable businesses as well as trophy assets.”

Copyright © 2015 Goal.com All rights reserved.

Add a new comment

 avatar