Second year of profit for the Premier League

Second year of profit for the Premier League

Premier League football clubs have recorded a second consecutive year of aggregate pre-tax profits for the first time since 1999, according to new research.

Premier League football clubs generated approximately £120m in 201415, according to new research by Deloitte, the business advisory firm. 

This is the second highest-ever aggregate pre-tax profit for Premier League clubs, and follows last season’s record-breaking profit of £190m.

In addition, in 201415 clubs recorded combined operating profits (which excludes player trading, net interest charges and the amortisation of player contracts) of more than half a billion pounds.

Despite being lower than the operating profit achieved in the first year of the current broadcast rights deals in 201314, this is nevertheless the second highest ever. Of the 20 clubs in the Premier League, 17 recorded an operating profit in 201415.

Dan Jones, partner in the Sports Business Group at Deloitte, said: “The perennial problem for Premier League clubs was to convert impressive revenue growth into profitability.

“We saw this problem solved with record breaking results last year. The new challenge was to sustain this financial success, and the Premier League clubs have accomplished this in impressive style in the latest results.

“With further significant revenue increases already guaranteed for the next broadcast cycle, starting in 201617, there is every reason to be confident of the Premier League clubs’ profitability being here to stay.”

Deloitte’s Sports Business Group has also revealed that Premier League clubs’ wage costs rose by 6% in 201415, to a total of £2bn, a new record, increasing the wagesrevenue ratio to 60%.

Despite the increase in wage costs, the ratio is still the second lowest in the Premier League in the last 10 years.