LONDON: The English Premier League, despite being the richest football championship in the world, is losing money – an apparent £110m in season 2015-2016 – according to the latest Deloitte report.
A sharp increase in wages mainly explains these losses. The Premier League thus fell back into the red after two profitable years in 2013-2 014 and 2014-2015. However this may prove only a one-year blip.
Deloitte’s Dan Jones said: “We expect that the new broadcast contract for the next three years will generate a return of profits for the 2016-2017 season.”
Clubs saw increased player expenditure, operating costs and one-off charges.
The two Manchester clubs’ revenues increased by a total of £160m – roughly half of the total revenue growth recorded by the Premier League clubs.
Jones said Manchester United’s participation in the 2015-16 Champions League, along with continued strong commercial revenue growth, resulted in a 30pc increase in revenue to £515m, making them the world’s highest revenue-generating club.
He added: “Increased distributions to clubs competing in Europe, under the new Uefa broadcast rights cycle – notably Manchester City, who reached the semi-finals of the Champions League – also contributed to Premier League clubs’ revenue growth.”
(2014-15 in brackets)
Revenues – £3.6bn (£3.4bn in 2014-15)
Wage costs – £2.3bn (£2bn)
Other operating costs – £900m (£800m)
Operating profit – £500m (£500m)
Net player trading – £400m (£300m)
Other costs – £200m (£100m)
18 clubs made an operating profit
12 clubs made a pre-tax profit
Source: Deloitte Analysis