LONDON- Premier League clubs reported record revenues of £4.5bn in the 2016-17 season, and also returned to profit.
According to Deloitte figures Clubs collectively reported £500m in pre-tax profit, a record, posting a small collective pre-tax loss in 2015-16.
Wages rose by 9% to £2.5bn.
Dan Jones, head of Deloitte’s Sports Business Group said, “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,”
He added that clubs have shown some restraint, “restraint shown by clubs to control their wages has translated broadcast revenue success into healthy operating and pre-tax profits”.
Premier League 2016-17 in numbers (2015-16 in brackets)
Revenues – £4.5bn (£3.6bn)
Wage costs – £2.5bn (£2.3bn)
Other operating costs – £1bn (£800m)
Pre-tax profit – £500m (£110m loss)
Operating profit – £1bn (£500m)
Net player trading costs – £400m (£400m)
Other costs – £100m (£200m)
All 20 clubs made an operating profit
18 clubs made a pre-tax profit
Deloitte Analysis, Figures are subjected to rounding
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.
“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.”
Photo Credit- BBC.com