Premier League clubs’ revenue reached a record £2.36bn in 2011-12, according to football finance experts at Deloitte. It estimates revenue grew to £2.5bn in 2012-13, and will grow by a further £600m, or 25%, in 2013-14, when the league’s new broadcast deal kicks in. Deloitte says this should take the projected revenue of Premier League clubs above £3bn for the first time. 

 

It says this cash, plus new spending rules, “could provide huge benefits to the long-term development” of football. “Despite operating in a challenging economic environment, English club football’s profile, exposure and increasingly global interest have continued to drive revenue growth for the top clubs,” said Dan Jones, partner in the Sports Business Group at Deloitte. 

 

Across English football, the revenue of the top 92 clubs exceeded £3bn for the first time in 2011-12. However, worries remain about the proportion of revenues being spent on player wages. Almost 75% of the Premier League clubs’ revenue increase in 2011-12 was spent on wages, which increased by £64m, or 4%, to £1.7bn. It meant the overall Premier League wages-to-revenue ratio remained at 70%. “It is the age-old picture; revenues continue to be healthy and wage levels continue to be a concern,” said Jones. 

 

In the second tier of English Football - the Championship - spending on wages increased by £53m (13%) to £476m in 2011-12. Deloitte says this was driven in part by the number of clubs being in receipt of parachute payments from the Premier League and the change in the mix of clubs.”Championship clubs continue to overstretch off the field as they seek playing success to reach the Premier League,” Jones said. (Agency)