Premier League booming in stable football market — Report

LONDON: The Premier League delivered its ‘ most impressive results’ ever in a European football market worth a record 25.5 billion euros – reflecting a new era of financial stability, analysts Deloitte said on Thursday.

The big five European leagues generated £ 14.7 billion ( US$ 17.3 billion) revenue in 2016/17, a nine percent increase from the previous year, with the Premier League 86 percent bigger than its nearest competitor, Spain’s La Liga.

The 92 Premier League and Football League clubs generated a record £ 5.5 billion ( US$ 7.4 billion) and it is now more than five years since an English football club entered insolvency proceedings, ref lecting bet ter f inancial discipline and the positive impact of regulation, Deloitte said.

Roar Power - Annual Review of Football Finance 2018, from the Sports Business Group at Deloitte, said new broadcasting arrangements in England, Spain and France had had a major impact on revenue growth.

“The f inancial position of European footbal l appears healthier than it has been for a long time, ref lecting the global popularity of the game, the professionalism of leading clubs and the strength of the regulatory environment in which they operate,” said Tim Bridge, a director in the Sports Business Group.

“While the Premier League is the clear market leader, we expect to see continued growth and interest across Europe’s leagues in the years to come.”

With a new broadcast cycle starting in 2016/17 for the Premier League, the 20 clubs generated record revenues of £ 4.5 billion, 25 per cent higher than in the previous season.

Deloitte said that in previous years, any increase in revenue would have been expected to lead to a proportional increase in wages but in an era of regulatory controls, clear market leadership and stronger f inancial sel fdiscipline, wage costs rose only nine per cent to £ 2.5 billion.

While this is still a record high, the Premier League’s wages/ revenue ratio fell to just 55 per cent, its lowest level since 1997/98 (52 per cent).

No Premier League club reported an operating loss, the first time that this has ever happened.

“The financial results of the class of 2016/ 17 are the most impressive we have ever seen,” said Dan Jones, partner in the Sports Business Group. — AFP