Connect with us

AFP

EPL clubs post pre-tax losses despite record revenues — report


London (AFP) – Premier League clubs’ revenues hit a new record of £3.6 billion in the 2015-16 season, but top-flight teams still recorded pre-tax losses of £110 million, according to sports finance experts Deloitte.

The record revenues were nine percent higher than the  previous top total of £3.4 billion posted in the 2014-15 campaign, with Manchester United and Manchester City responsible for more than half of the rise.

United’s revenue grew to £515 million, which saw them top the Deloitte Football Money League for the first time since 2003-04 as the world’s highest revenue-generating club

Increased wage costs, up by 12 percent to £2.3 billion, were the main factor in the combined losses of England’s 20 elite clubs.

It is the first time Premier League teams have posted an aggregate pre-tax loss since the 2012-13 season.

Dan Jones, partner and head of the Sports Business Group at Deloitte, said: “The 2015-16 season saw Premier League clubs grow revenues by almost 10% to £3.6bn, with the two Manchester clubs alone responsible for more than 50% of the increase.

“Manchester United’s participation in the 2015/16 UEFA Champions League, coupled with continued strong commercial revenue growth, resulted in a 30% increase in revenue to £515m. 

“Our analysis reveals a return to pre-tax losses, following two consecutive years of pre-tax profits.

“However, it is worth noting that this is due to a small number of one-off ‘exceptional’ costs, and we fully expect that the Premier League’s new three-year broadcast rights deal will see a return to record levels of profitability in the 2016-17 season.”

Sky and BT paid a record £5.136 billion for the latest round of TV rights, a sum 71 per cent higher than the previous deal.

200+ Channels With Sports & News
  • Starting price: $33/mo. for fubo Latino Package
  • Watch Premier League, World Cup, Euro 2024 & more
  • Includes NBC, USA, FOX, ESPN, CBSSN & more
Live & On Demand TV Streaming
  • Price: $69.99/mo. for Entertainment package
  • Watch World Cup, Euro 2024 & MLS
  • Includes ESPN, ESPN2, FS1 + local channels
Many Sports & ESPN Originals
  • Price: $6.99/mo. (or get ESPN+, Hulu & Disney+ for $13.99/mo.)
  • Features Bundesliga, LaLiga, Championship, & more
  • Also includes daily ESPN FC news & highlights show
2,000+ soccer games per year
  • Price: $4.99/mo
  • Features Champions League, Serie A, Europa League & NWSL
  • Includes CBS, Star Trek & CBS Sports HQ
175 Premier League Games & PL TV
  • Starting price: $4.99/mo. for Peacock Premium
  • Watch 175 exclusive EPL games per season
  • Includes Premier League TV channel plus movies, TV shows & more
Click to comment

Leave a Reply

Your email address will not be published.

More in AFP

Translate »