Premier League clubs enjoy record profits - Deloitte report
Reuters
Published Apr 19, 2018 09:06PM ET
Premier League clubs enjoy record profits - Deloitte report
By Simon Evans
MANCHESTER, England (Reuters) - Premier League clubs enjoyed record profits and revenues in the 2016/17 season according to data released on Friday by Deloitte, who expect profitability to continue despite a decline in domestic broadcasting revenue.
The combined revenues of Premier League clubs increased by nearly 1 billion pounds ($1.4 billion) to a record 4.5 billion pounds in the 2016/17 season.
The collective pre-tax profit of 0.5 billion pounds was almost three times the previous record of 0.2 billion in 2013/14, reported Deloitte.
Deloitte found that wage costs across the league rose by nine percent to 2.5 billion pounds, a new record, but noted that growth was significantly slower than the 25 percent increase in overall revenue.
"As predicted last year, the Premier League’s three year broadcast deals which came into effect in the 2016/17 season helped drive revenue to record levels," said Dan Jones, head of the Sports Business Group at Deloitte.
Deloitte's analysis found that Premier League clubs have collectively made a pre-tax profit in three out of the last four years.
Deloitte expects that trend to continue despite a fall in income from domestic television deals for the three years from the 2019/20 season.
In 2015, Sky and BT smashed forecasts by paying a record 5.14 billion pounds to show matches featuring the likes of Manchester United, Chelsea and Liverpool, as they battled for pay-TV and broadband subscribers.
The two companies, however, will pay a reduced 4.46 billion pounds for 160 games a season in the latest three-year rights packages.
The Premier League hopes revenue from international rights deals will continue to increase.
"Despite the lack of growth in domestic broadcast deals announced to date, we still expect to see overall revenue growth in the coming seasons, and if this is complemented with prudent cost control, we expect that pre-tax profits will be achieved for the foreseeable future," added Jones.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.