Premier League football

Premier League revenues hit record £4.5 billion mark

Premier League club’s reported record breaking revenues of £4.5 billion for the 2016/2017 season according to a report by Deloitte.

Revenues rose from £3.6 million in the 2015/2016 season mainly due to the mega three year TV deals signed with Sky and BT Sport.

All 20 Premier League clubs made a operating profit and 18 made a pre tax profit. Interestingly wage costs only rose by 9% which is significantly lower than the 25% rise in revenues.

As Dan Jones of Deloitte explains there has been a concerted effort by clubs to reduce their revenue-to-wage ratio, which has dropped from 63% to 55% and is actually at its lowest level since the 1997/1998 season.

“Restraint shown by clubs to control their wages has translated broadcast revenue success into healthy operating and pre-tax profits”. Jones told the BBC.

“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.

“The most significant wage increases have tended to occur in the year prior to the commencement of a new broadcast cycle once a substantial revenue increase is secured.”

Sky and BT paid a whopping £5.13 billion for Premier League TV rights from 2016-2019, although the broadcasters have secured a reduced deal for the next three year cycle between 2019-2022 for which they will pay £4.46 billion.

It’s seem that the era of English clubs being the richest in Europe is showing no sign of ending any time soon.

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