The Liberty Stadium

Next Game

Swansea v Burnley

Saturday, 23 August 2014, 15:00

Barclays Prem

Turf Moor

Last Game

Burnley 1 - 3 Chelsea

Monday, 18 August 2014, 20:00

Barclays Prem

PL revenues break record

Commercial revenue increased by 21% at Premier League clubs in the 2012/13 season and topped £2.5 billion for the first time, according to the Annual Review of Football Finance by Deloitte.

Last Updated: 05/06/14 at 10:18 Post Comment

Bet £10 Get £30

Daily Offers And Promotions. Join Now & Bet £10 and Get a £30 Free Bet

However, over 75% of the revenue increase was spent on wages, which rose by £125m (8%) to £1.8billion and resulted in the overall Premier League clubs' wages to revenue ratio reaching a record high of 71%.

These increases led to the aggregate profit falling by £2m to £82m, although 13 of the Premier League clubs made a profit in 2012/13 compared with 10 in the previous year.

Adam Bull, senior consultant at Deloitte, says that wage costs are forecast to increase again in 2013/14: "The pattern in spending on wages following previous increases in broadcast deals, suggests it's likely around 60% or more of the revenue increase in 2013/14 will flow through to wages.

"On that basis, we would expect Premier League total wage costs to reach a new record level of around £2.2billion. However, given the forecast increase in revenue, this would also return the wages to revenue ratio below 70% for the first time since 2009/10."

Dan Jones, partner at Deloitte, said: "Once again the global appeal of the Premier League has continued to drive commercial revenue growth, particularly at the highest ranked Premier League clubs. Matchday revenue also increased by 6% with fewer unsold seats at Premier League games than ever before."

Premier League clubs will receive another significant increase in revenue in the 2013/14 season. Deloitte estimates that revenue will have increased by almost 30% to £3.2 billion in the 2013/14 season.

This growth will be driven by the revenue from the first season of the Premier League's new broadcast deals and further commercial revenue growth at the biggest clubs.

However, the 2012/13 season was a particularly bleak year for the finances of Championship clubs. A revenue reduction of £39m was compounded by a £40m increase in wage costs, leading to record operating losses of £241m. Pre-tax losses also increased by £170m, equivalent to an additional £7m per club, to £323m.

Bull commented: "The 2012/13 wages to revenue ratio for Championship clubs of 106% is the highest ever recorded by an English division and is clearly unsustainable without ongoing owner support.

"The introduction of the Championship Financial Fair Play Rules was widely seen, and advocated by the clubs who voted it in, as a necessary step to change clubs' behaviour.

"The severity of the punishments applied to those who have not complied with the rules in the 2013/14 season and the eventual result of efforts to change the rules, will determine the extent to which they present an effective deterrent to widespread overspending."

Other key findings include:

The Bundesliga remained Europe's most profitable league with operating profits of £226m, followed by the Premier League, with operating profits of £82m;

The total European football market grew to a record £17.1 billion (€19.9 billion) in 2012/13;

Premier League clubs generated the highest revenue (£2.5 billion) of any league in Europe in 2012/13, followed by Germany (£1.7 billion), Spain (£1.6 billion), Italy (£1.4 billion), and France (£1.1 billion);

The top 92 English clubs invested £211m in stadia and facilities in 2012/13, the highest amount of capital investment since 2006. Capital investment by clubs across the top four divisions since the Premier League began has now exceeded £3.5 billion;

Net debt in respect of Premier League clubs was £2.5 billion, an increase of £139m (6%) on 2012;

The Government's tax take from the top 92 professional football clubs was around £1.3 billion in 2012/13.

Given that this was the benchmark year for domestic FFP, the fact that only "75% of the revenue increase was spent on wages" is probably a big positive. With future wage bills assessed against 2012/13 and the new TV deal coming in (but wage bill increases utilising it being restricted) I'm surprised this report didn't show wages increasing quicker than revenue.
- bernsteinforpm

Bet £10 Get £30

Daily Offers And Promotions. Join Now & Bet £10 and Get a £30 Free Bet

Related News

Most Commented

Readers' Comments

O

K FIFA we're done, you can ban us now

jimmyjazz
Barcelona transfer ban upheld

A

h Daniel. I could spend hours on this subject putting the world to rights. You can even take a step back and ask why football fans (and society in general) have this need to know that something will happen before it actually does. There are times this important, when it comes to things like war, food production and natural disasters. A man you've never met changing his job? Not so much.

ajsr1982
Time To Burst The ITK Bubble

G

reat article. Hits the nail on the head. Encapsulates why I don't read tabloid newspapers anymore. The only thing worse is the 'told you so first' headline when they get lucky.

ianonabeach
Time To Burst The ITK Bubble

Footer 365

Transfer News: Bruce confirms Hull are eying Vincent Aboubakar

Hull City manager Steve Bruce has revealed the club are considering a move for Lorient forward Vincent Aboubakar.

Premier League: Edin Dzeko signs new four-year Manchester City deal

Edin Dzeko has signed a new four-year contract with Manchester City.

Champions League: Callum McGregor on target in Celtic draw

Celtic claimed a 1-1 draw with Maribor in Slovenia in the first leg of their Champions League play-off clash.

Mail Box

So Long And Good Luck To Nani

A Mailbox that offers best wishes to a departing hero, defends Olivier Giroud, tells us to steady on over Calum Chambers and makes some amusing predictions...

Mailbox: Feeling Sorry For Poor TC23

If there's one loser in all the machinations at Man United, it's poor TC23. We have mercifully few mails on United, but lots on Arsenal and in particular Olivier Giroud...

© 2014 British Sky Broadcasting Ltd. All Rights Reserved A Sky Sports Digital Media property