Thursday, May 31, 2012

Cashing in on football

A Deloitte report  shows the huge growth in revenues since the Premier League was created two decades ago. Premier League clubs' combined revenue reached a record £2.27bn in 2010-11. In the same season, the 92 Premier and Football League clubs' combined revenues were £2.9bn, with average Premier League club revenues having risen to £114m.
Supporters of Newcastle United Average Premier League attendances were close to 35,000 in 2010-11. Average attendances were close to 35,000 in the Premier League in 2011-12, with more than 90% of seats sold.
"There is little doubt that the league is a tremendous success in revenue terms," said Deloitte.

Outside of the top flight, Deloitte says that for many years the second tier of English football, the Championship, has struggled financially. This is due to a combination of clubs adjusting to the impact of relegation from the Premier League, and others attempting to to achieve promotion, often taking financial gambles to try and get to the top flight. It means that the Championship has delivered six seasons of increasing losses.

Of the "big five" leagues - England, Germany, Italy, Spain and France - all but Ligue 1 in France saw growth. Total collective revenues for the five leagues rose by 2% to 8.6bn euros.In Scotland, Celtic and Rangers, accounted for 67% of Scottish Premier League clubs' total revenues.

The proportion of income that Premier League clubs spend on wages hit a new high in the 2010-11 season, said the report, saying that control of wages "continues to be football's greatest commercial challenge". The Premier League's key wages to revenue ration, which had stood at around 60% for most of the 2000s, has risen sharply in recent seasons to exceed 70% for the first time. Total wages across the Premier League rose by £201m (14%). Manchester United, who won the league that year, spent 46% of revenue on pay, but Manchester City spent 114%.



TOP PREMIER LEAGUE WAGE BILLS 2010-11
    Chelsea - £191m (up from £174m in 2009-10)
    Manchester City - £174m (£133m)
    Manchester United - £153m (£132m)
    Liverpool - £135m (£121m)
    Arsenal - £124m (£111m)

Source

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