Record US$5 bil­lion rev­enue for EPL clubs: study

The China Post - - SPORTS - BY TOM WIL­LIAMS

English Pre­mier League clubs gen­er­ated record com­bined rev­enues of 3.26 bil­lion pounds (US$5 bil­lion) in 2013-14, ac­cord­ing to a re­port pub­lished by busi­ness ad­vi­sory firm Deloitte on Thurs­day.

The fig­ure, fu­eled by the start of a new tele­vi­sion rights cy­cle, rep­re­sented a rise of 29 per­cent on the 2012-13 sea­son and saw the English top flight sur­pass Ger­many’s Bun­desliga as Europe’s most prof­itable league.

“The im­pact of the Pre­mier League’s broad­cast deal is clear to see,” Dan Jones from Deloitte’s Sport Busi­ness Group said in a state­ment ac­com­pa­ny­ing the com­pany’s 24th An­nual Re­view of Foot­ball Fi­nance.

“Broad­cast in­come in­creased by 569 mil­lion pounds in 2013-14, ac­count­ing for 78 per­cent of the over­all growth in rev­enue in the Pre­mier League.

“Con­tin­ued growth in both com­mer­cial and match-day rev­enue helped Pre­mier League clubs’ com­bined rev­enues reach 3.26 bil­lion pounds — a stag­ger­ing in­crease of 735 mil­lion pounds com­pared with the sea­son be­fore.”

He added: “In 2013-14, even the Pre­mier League club re­ceiv­ing the least from do­mes­tic league broad­cast dis­tri­bu­tions earned more from this source than all but five other Euro­pean clubs.

“Fol­low­ing re­cent an­nounce­ments of com­mer­cial deals for a host of the largest clubs, we ex­pect the Pre­mier League to sur­pass the Bun­desliga in com­mer­cial rev­enue terms and hence lead the world in all three key rev­enue cat­e­gories from 2014-15.”

Over­all, com­bined rev­enues in Europe’s top five leagues — Eng­land, Ger­many, Spain, Italy and France — rose by 15 per­cent to 11.3 bil­lion eu­ros.

Fol­low­ing Eng­land’s ex­am­ple, the four other leagues also wit­nessed rev­enue rises — by 15 per­cent in France, 13 per­cent in Ger­many, three per­cent in Spain and one per­cent in Italy.

But France’s Ligue 1 clubs gen­er­ated a com­bined op­er­at­ing loss of 140 mil­lion eu­ros, a huge rise from just three mil­lion eu­ros the pre­vi­ous sea­son.

In Spain, mean­while, Real Madrid and Atletico Madrid were the only clubs out of 20 whose rev­enues did not fall.

De­spite a woe­ful cam­paign in the first sea­son af­ter the end of Alex Fer­gu­son’s 27-year ten­ure as manager, Manch­ester United gen­er­ated an all-time record op­er­at­ing profit of 117 mil­lion pounds.

That fig­ure helped the English top flight to a record op­er­at­ing profit of 614 mil­lion pounds.

Pre­mier League clubs re­duced their ag­gre­gate level of net debt by six per­cent to 2.4 bil­lion pounds, with Ar­se­nal, As­ton Villa and Tot­ten­ham Hot­spur con­tribut­ing a com­bined net debt re­duc­tion of 205 mil­lion pounds.

And the wealth of the English top flight shows no sign of di­min­ish­ing, af­ter a record-break­ing 5.1-bil­lion­pound do­mes­tic TV rights deal for the pe­riod 2016-2019 was an­nounced in Fe­bru­ary.

For the first time since 2006-07, each of the five lead­ing Euro­pean leagues re­ported wage/ rev­enue ra­tios that were at or be­low 70 per­cent.

The av­er­age wage/rev­enue ra­tio across the five cham­pi­onships fell to 59 per­cent — its low­est point since the 1999-2000 sea­son.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.