By David Gold
June 9 – Premier League revenues increased by £49 million ($80 million) to exceed £2 billion ($3.2 billion) in total during the 2009-10 season but are rising slower than total wage costs, which grew by £64 million ($105 million) to £1.4 billion ($2.3 billion), according to the latest report published by accountants Deloitte.
Germany generated the second largest revenues in Europe with £1.4 billion ($2.3 billion), with Italy and Spain with £1.3 billion ($2.1 billion) and France £900 million ($1.5 billion) further behind.
There was another Premier League record set as broadcast revenue broke the £1 billion ($1.6 billion) mark, the first domestic football league to do so.
Dan Jones, Partner in the Sports Business Group at Deloitte, said: “Despite the difficult economic environment, Premier League clubs’ revenues increased by two per cent in 2009/10.
“The dip in matchday revenue was mainly due to the change in the mix of clubs in the Premier League – in particular Newcastle United’s relegation – and earlier exits from the UEFA Champions League by all four English clubs compared to 2008/09.
“Like for like average Premier League attendances were broadly level in 2010/11.”
Player salaries still represent a significant concern, with the wages to revenue ratio rising to 68 per cent, meaning that operating profits in the Premier League only increased by £4 million ($6.5 million).
More positive is the news that net debt in the Premier League has fallen from £3.3 billion ($5.4 billion) to £2.6 billion ($4.2 billion), in part due to teams such as Manchester City, captained by Carlos Tevez (pictured), and Chelsea converting debt to equity.
The conclusion of the boardroom battle at Liverpool last year and property sales made by Arsenal also reduced their respective debts significantly.
There was also good news for the Championship, which is the third best attended league in Europe, behind the Premier League and Bundesliga, with its clubs generating more than £400 million ($655 million) in revenues, though Newcastle United’s season in the division to some extent explains these increases.
Commenting on the survey’s findings, Paul Rawnsley, director in the Sports Business Group at Deloitte, welcomed the UEFA financial fair play initiative, which will come into play in the coming years, but said that Premier League clubs were in a good position to deal with the new regulations.
“We welcome the steps taken by football authorities, domestically and at a European level, to help clubs address this issue.
“Premier League clubs should be well placed to comply with UEFA’s regulations, as the Premier League remains the top revenue generating league in Europe.
“Clubs have time to make adjustments to their business plans before the new regulations are effective, as well as increased broadcast revenue from 2010/11 to help deliver a better balance between spending on players and revenue generation.”
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