Premier League clubs enjoy record profits

Paola Ditto
Aprile 20, 2018

Only 23p of every extra pound of revenue last season went on wages, due largely to restrictions on spending at domestic and European level, bringing the league's wages-to-revenue ratio - a trusted sustainability metric - down to 55 per cent, its lowest level for 19 years.

England's top division enjoyed another record-breaking year in 2016-17, with collective revenue up to £4.5bn and pre-tax profit rising to £500m - nearly three times the previous record for the league - according to Deloitte.

Collectively, clubs reported £0.5bn in pre-tax profit, also a league record, with wages increasing by 9% to £2.5bn.

In a statement, Dan Jones, the head of Deloitte's Sports Business Group, said the increase in revenue was a result of last season being the first of the current three-year domestic deal with BT and Sky, which is worth more than £5.1bn.

Both companies, however, will pay a lesser 4.46 billion kilos for 160 games per year within the latest three-year legal rights bundles.

Jones added: "Although we anticipate wage costs will continue to rise in the coming seasons, we do not foresee increases to be at a level which can jeopardise the profitability of the Premier League as a whole".

Clubs in the Premier League generated a combined operating profit of £1bn in the 2016/17 season, according to analysis from Deloitte's Sports Business Group.

The league is expected to restart the auction process again after the season and it is still hoped that interest from the likes of Amazon could get the total domestic package for 2019-22 up to the current figure.

Sports Business Group senior consultant Tim Bridge said: "We have already seen some clubs utilising their significant revenue increases, with a record £1.9bn spent on transfers in the 2017-18 season".

"We may again see similar levels of spending in the coming season, with the Fifa World Cup providing the flawless shop window for talent, but expenditure remains well within the means of clubs", Bridge added.

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