Premier League set new profits record as finances soar

The Premier League has posted a collective pre-tax profit of £0.5billion (€0.57billion), almost three times the previous record of £0.2billion (€0.23billion) in 2013/14.

The stark increase in profits can be attributed to strong broadcast revenues and Financial Fair Play rules, according to financial services firm Deloitte. Combined revenues of Premier League clubs increased to a record £4.5billion (€5.13billion) in the 2016/17 season with wages also rising across the league by nine per cent to a new record of £2.5billion (€2.85billion), more than double the total spent by the clubs in any of the other ‘big five’ leagues. Dan Jones, head of the Sports Business Group at Deloitte, expects overall revenue to grow over the coming seasons despite the lack of growth in domestic broadcast deals. “As predicted last year, the Premier League’s three year broadcast deals which came into effect in the 2016/17 season helped drive revenue to record levels,” said Jones. “Despite the lack of growth in domestic broadcast deals announced to date, we still expect to see overall revenue growth in the coming seasons, and if this is complemented with prudent cost control, we expect that pre-tax profits will be achieved for the foreseeable future." The Premier League’s new three-year broadcast rights cycle, which commenced at the start of the 2016/17 season, resulted in an average 45% increase in central distributions to clubs compared with 2015/16. This growth will be enhanced and supported by new commercial agreements such as Chelsea’s with Nike, and likely matchday revenue uplifts arising from West Ham United’s move to the London Stadium in 2016/17, Liverpool’s expansion of their main stand, and Tottenham Hotspur’s planned one-year residency at Wembley in 2017/18.