LONDON: Premier League clubs have posted a combined pre-tax profit for the first time in 15 years, according to the latest Deloitte report.
The professional services firm reported that the 20 Premier League clubs generated a pre-tax profit of £190m in 2013-14.
This figure is largely based on the increase in broadcasting and commercial revenues along with new cost control rules put in place by UEFA and the Premier League.
The Deloitte figures show that Premier League revenues were up by 29pc in 2013-14 from £2.5bn to £3.3bn.
The report also showed that wages grew by an unexpected low figure of just 6pc from £1.8bn to £1.9bn.
“In the first year of the preceding two broadcast deals, 56pc and 81pc of respective revenue growth was absorbed by wage costs. This time it is less than 20pc,” said Dan Jones, a partner in the Sports Business Group at Deloitte.
“Over the previous 10 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.”
Judging by these figures, the new cost control rules put in place by UEFA and the Premier League seem to be having the desired effect in terms of decreasing the level of spending.
Adam Bull, a senior consultant in the Deloitte Sport Business Group said: “The introduction of cost control regulations at both a European and domestic level has caused many clubs to watch their spending more closely than ever before and created a useful tool for clubs to reduce the inflationary pressures during negotiations with players and agents.
“Also, the current broadcast deal has given Premier League clubs such a large revenue advantage over the vast majority of European clubs that they can still attract the top playing talent without overstretching themselves financially.”