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Premier League finances enter ‘new era’

6 June 2016
Premier League finances enter ‘new era’

Ever-increasing TV deals are seeing Premier League clubs become ‘attractive propositions’ to investors, according to Deloitte.

Deloitte’s 25th ‘Annual Review of Football Finance’ found that Premier Clubs generated a record £3.3 billion in revenues throughout the 2014-15 season – a rise of three per cent.

It forecasted that there will be at least another three years of ‘big’ growth.

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

“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.

In the 2016-17 season clubs will receive even more cash from broadcasters, with Sky and BT Sport paying a record £5.13 billion for live Premier League TV rights for three seasons.

“When the enhanced new broadcast deals commence in the 2016/17 season, operating profits could rise as high as £1 billion,” added Jones.

Key findings from the ‘Annual Review of Football Finance’:

– Broadcast rights deals saw Premier League clubs enjoy the second-highest level of both operating profits (£546 million) and pre-tax profits (£121 million) in 2014-15

– A total of 17 Premier League clubs recorded an operating profit; 14 recorded a pre-tax profit

– Clubs’ revenues were more than £1.5 billion higher than the next highest earning league, Germany’s Bundesliga

– Premier League match day revenues now account for about one-fifth of club

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