Premier League clubs record record revenues last year
Premier League clubs record record revenues for the past year, with the top 6 continuing to break away from the rest in financial terms. All reports for the past season are registered with Companies House, and Deloitte and Vysyble financial analysts have compiled reports looking at the general picture in the elite of English football.
Total turnover reached 4.8 billion pounds in 2017-18, up 200 million compared to the previous campaign, but total wage costs rose by £ 400 million to 2.9 billion, with the average salary / revenue ratio has risen from 55 to 59%. That means operating profit fell 16 percent to £ 0.9 billion and total pre-tax profit fell to $ 0.4 billion from a record £ 20 billion in £ 20 billion.
There is a gap between the top six clubs – Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham, and everyone else. According to Deloitte, the revenue growth is due in particular to all of the top 6 without Arsenal who played in the Champions League last season – a record for the league in terms of number of clubs in the most prestigious European club race – like all five of them reached the elimination phase of the tournament. This significantly improved the turnover of television broadcasting and advertising clubs.
In addition, Tottenham’s home matches played temporarily at the Wembley National Stadium allowed the North London team to increase their income from hospitality, tickets and sponsorship. This allowed the club to record a record profit after the 113 million pound last season, surpassing Liverpool with 106 million over the same period. The facts show that spurs have contributed to more than half of the game revenue and nearly a quarter of those for advertising, while Liverpool and Tottenham together account for 58% of the total pre-tax profit. When we add Arsenal, Chelsea and the two Manchester clubs in the equation, the contrast with the other teams becomes obvious.
According to Vysyble, top 6 accounts for 89% of the total pre-tax profit – 401 million pounds – for comparison, in the year 2016-17 it was only 36 and the sum of 179 million. The six richest clubs in the Premier League have won more than 53.4 million pounds per week – 48.4 million last season, while the other 14 clubs have earned a total of 39.4 million pounds a week – 200,000 less than last year. The difference between the sixth and the seventh in terms of turnover – Tottenham and Everton – rose from 77 million to 192 million pounds, while the bottom-line revenue of Manchester United and West Bromwich Albion was 465 million – the largest , reported so far. Deloitte’s analyzes focused on talent prices and noted that nearly half of the league had spent 70% on salaries.
“The increase in wage costs was expected amid a busy transfer market in 2017-18, with two record windows reporting £ 1.9 million,” said Deloitte Chief Executive Tim Bridge. “However, given the supposed increase in the cost of television rights in the next broadcasting cycle, growth in wage and transfer costs may slow down, which has already been signaled by the estimated 1.4 million pounds of gross transfer costs this season. With the emphasis on how clubs can generate revenue growth from sources other than television broadcasts, we may see a drop in pre-tax profit levels over the next few years, “he concluded.