The report, which provides a snapshot of the finances for all the major European leagues and clubs and which was published this morning, reveals the top 20 Premiership clubs generated over £1.3bn in revenue for the 2004/05 season.
Dan Jones, partner in the Sports Business Group at Deloitte, said: “Over the past decade, we have seen Premiership wages rise by an average of 20 percent each year. The 3 percent reduction in the total wage costs for Premiership clubs, based on the latest available figures, provides a stark contrast.
“Our latest analysis further supports the improving balance between revenue and costs, not just in England, but also across Europe. The need to 'save clubs from themselves' with a salary cap now seems far less important than it did five years ago.”
The report also highlights the prowess of the Premiership compared to its global rivals.
Alan Switzer, senior consultant in the Sports Business Group, added: “While the German Bundesliga and Italian Serie A clubs had the biggest leaps in financial fortunes, with revenues up 17 percent and 16 percent respectively, English Premiership clubs remain well ahead.
“Premiership clubs benefit from a more even spread of revenue across different sources and different clubs, and greater profitability than European rivals.”
Key findings of the report include
- The 'big five' European leagues generated 54 percent of the total £7.8bn European football market. These are the top tier leagues in England (£1.3 billion), Italy (£0.9 billion), Germany (£0.8 billion), Spain (£0.7 billion) and France (£0.5 billion).
- Clubs in Germany (17 percent) and Italy (16 percent) had the highest rates of revenue growth for the 2004/05 season, compared to 1 percent in the English Premiership.
- In addition to the English Premiership, clubs in Italy (down 2 percent) and France (down 3 percent) also managed a reduction in total wages costs in 2004/05. Across the 'big five' leagues, the ratio of wages to revenue continues the improving trend of recent years.
- English clubs are the most profitable in Europe, followed by Germany. For 2004/05, a record 14 clubs reported pre-tax profits.
- Revenue generated by the Championship clubs of £306m reaffirms it as Europe's sixth biggest league, after the 'big five', and an impressive £134m ahead of the next biggest second tier league in Europe (Italian Serie B).
Paul Rawnsley, director in the Sports Business Group at Deloitte, concluded: “We expect English clubs to continue to lead the world financially. The new TV deals are set to boost Premiership clubs' revenues to over £1.7bn from 2007/08. Whilst the majority of the increase is likely to be spent on players, there will also be further investment across the clubs' businesses to secure this broad based future success.”
English soccer Premiership clubs remain the most commercially successful in the world – but total spending on wages has dropped for the first time in the league’s history, according to Deloitte’s latest Annual Review of Football Finance.
