Revenue rockets for Premier League clubs

Manchester City's Vincent Kompany lifts the Barclays Premier League trophy.
Manchester City's Vincent Kompany lifts the Barclays Premier League trophy.
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Premier League clubs’ revenue reached a record £2,525m in 2012-13, according to the 23rd Annual Review of Football Finance by Deloitte.

Seventy-five per cent of that was spent on wages, which rose by £125m (eight per cent) to £1.8b.

Overall, the revenue of the top 92 clubs in English football reached almost £3.2b.

Dan Jones of Deloitte said: “Once again the global appeal of the Premier League has continued to drive commercial revenue growth, particularly at the highest ranked Premier League clubs.

“Matchday revenue also increased by six per cent with fewer unsold seats at Premier League games than ever before.”

Revenue for Premier League clubs during the 2013-14 season is estimated to grow by almost 30 per cent to £3.2b.

Jones added: “This growth will be driven by the revenue from the first season of the Premier League’s new broadcast deals and further commercial revenue growth at the biggest clubs.”

The 2012/13 season was a particularly bleak year for the finances of Championship clubs.

A revenue reduction of £39m was compounded by a £40m increase in wage costs, leading to record operating losses of £241m.

Pre-tax losses also increased by £170m, equivalent to an additional £7m per club, to £323m.

Adam Bull, Senior Consultant in the Sports Business Group at Deloitte, said: “The 2012/13 wages to revenue ratio for Championship clubs of 106 per cent is the highest ever recorded by an English division and is clearly unsustainable without ongoing owner support.

“The introduction of the Championship Financial Fair Play Rules was widely seen, and advocated by the clubs who voted it in, as a necessary step to change clubs’ behaviour.

“The severity of the punishments applied to those who have not complied with the rules in the 2013/14 season and the eventual result of efforts to change the rules, will determine the extent to which they present an effective deterrent to widespread overspending.”