Published: Fri, April 21, 2017
Sports | By Nelson Rowe

Premier League clubs enjoy record revenues but suffers losses

Premier League clubs enjoy record revenues but suffers losses

With revenue set to surge again in 2016-17, however, these figures may turn out to be a temporary setback.

Revenues among Premier League clubs increased to record levels in 2015/16 but rocketing wage costs contributed to an overall pre-tax loss after two years in the black, according to analysis by Deloitte. Exceptional costs amounted to £110 million, a similar sum to the combined pre-tax loss. It ensured United topped Deloitte's Football Money League, which was published in January, as the world's highest revenue-generating football club.

"Increased distributions to clubs competing in Europe, under the new Uefa broadcast rights cycle - notably Manchester City, who reached the semi-finals of the Uefa Champions League - also contributed to Premier League clubs' revenue growth".

Dan Jones, partner and head of the Sports Business Group at Deloitte, spoke of the loss and blamed it on "a small number of one-off exceptional costs". It was an increase of £200 million, or 9%, on the same period past year - and the Manchester clubs were responsible for half of this.

United grew earnings by 30 per cent to £515m thanks in part to a return to the Champions League and the success of their lucrative commercial operations.

Alongside the new deal with Sky and BT, which began in August and is worth £5.1bn over three years, stadium moves and expansions by the likes of Chelsea, Tottenham and Everton are expected to drive an increase in future revenues.

The record revenues were nine percent higher than the previous top total of £3.4 billion posted in the 2014-15 campaign, with Manchester United and Manchester City responsible for more than half of the rise.

But Mr Jones said that whereas in the past, the ratio of player wages to income rose steeply when a new TV deal was signed, this time, "it is reassuring to see that there is more balance".

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