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Jun 9, 2011

Premier League clubs' revenue soars

Combined revenues of Premier League clubs have soared above £2 billion for the first time since the 2009-10 season, a Deloitte annual report on the finances of the game revealed.

The report praised football's "remarkable recession resistance" during the global economic crisis as fans continued to flock to stadiums across the country despite the economic downturn.

"At many football clubs, it's very hard to get season tickets," said Alex Byars, Senior Consultant in the Sports Business Group at Deloitte. "It's one of the last things fans are willing to give up (in a financial crisis). Football is a bit of a release and escape from the rest of the working week."

But it wasn't all good news for English clubs, as an increase in wages and pre-tax losses have left analysts worried. Indeed, Premier League clubs made record losses of £445 million due to clubs' high spending.

"The record pre-tax losses of 445 million pounds in 2009-10 are also a concern, particularly as credit is likely to remain less available to football clubs than it was two or three years ago," Byars said. "This may also, in part, explain why gross transfer spending by Premier League clubs decreased by more than 20 percent from the record 713 million pounds in 2008/09 to 559 million pounds in 2009-10."

Germany's Bundesliga rated as the most profitable league in the world ahead of the Premier League. However, the report suggested the high revenues of English clubs would place them in a strong position ahead of the new UEFA financial fair play rules to come into practice from the 2013-14 season.

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