The collective turnover of Barclays Premier League clubs hit a record £2.03 billion in the 2009-10 season and will have exceeded £2.2 billion in the 2010-11 campaign, according to the Sports Business Group at Deloitte.
The Group's 20th Annual Review of Football Finance added that the total European football market grew to a record £13.3 billion in 2009-10, with Germany (£1.4 billion), Spain and Italy (£1.3 billion each) and France (£0.9 billion) following the Premier League in the revenue stakes. However, for a second successive year the increase in Premier League clubs' total wage costs of £64 million (5%) exceeded the rise in revenues (£49 million), driving total wages up to over £1.4 billion and resulting in a record wages to revenue ratio of 68%.
"Of the £49 million increase in Premier League clubs' revenues, less than 10% (£4 million) fed through to operating profits, which increased from £79 million to £83 million," said Alex Byars, senior consultant in the Sports Business Group at Deloitte. "The challenge for clubs continues to be converting impressive revenue growth into sustainable profits that allow for investment in both infrastructure and talent."
Byars added: "The record pre-tax losses of £445 million in 2009-10 are a concern, particularly as credit is likely to remain less available to football clubs than it was two or three years ago. This may also, in part, explain why gross transfer spending by Premier League clubs decreased by more than 20% from the record £713 million in 2008-09 to £559 million in 2009-10."
Dan Jones, partner in the Sports Business Group at Deloitte, added: "Despite the difficult economic environment, Premier League clubs' revenues increased by 2% in 2009-10. Broadcast revenue grew by 7% to £1.04 billion to become the first £1 billion revenue stream of any domestic football league, even before further growth in 2010-11 from the uplift in overseas broadcast deal values."
"Of the £49 million increase in Premier League clubs' revenues, less than 10% (£4 million) fed through to operating profits, which increased from £79 million to £83 million," said Alex Byars, senior consultant in the Sports Business Group at Deloitte. "The challenge for clubs continues to be converting impressive revenue growth into sustainable profits that allow for investment in both infrastructure and talent."
Byars added: "The record pre-tax losses of £445 million in 2009-10 are a concern, particularly as credit is likely to remain less available to football clubs than it was two or three years ago. This may also, in part, explain why gross transfer spending by Premier League clubs decreased by more than 20% from the record £713 million in 2008-09 to £559 million in 2009-10."
Dan Jones, partner in the Sports Business Group at Deloitte, added: "Despite the difficult economic environment, Premier League clubs' revenues increased by 2% in 2009-10. Broadcast revenue grew by 7% to £1.04 billion to become the first £1 billion revenue stream of any domestic football league, even before further growth in 2010-11 from the uplift in overseas broadcast deal values."
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