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Premier League clubs exceed £2bn in revenue but losses hit record high

Barclays Premier League clubs’ revenue has exceeded £2bn for the first time in the competition’s history in 2009/10 but pre-tax losses after player trading and financing worsened to a new record of £445m.

The figures, in Deloitte’s Annual Review of Football Finance 2011, showed the npower Championship followed a similar pattern, with record revenues exceeding £400m for clubs but operating results at a loss of a record £133m.

Wages also cause concern with Premier League clubs’ total wages outdoing revenue growth to a record wages/revenue ratio of 68%.

Dan Jones, partner at Deloitte, said:  "The real financial pain in the Premier League in the last few years has often been felt in the middle of the table.

"Many clubs have made substantial investment in wages and transfers in order to survive with some comfort on the pitch whilst making significant financial losses.  Further down the domestic pyramid the Championship is a league of real contrasts.

"Although parachute payments for relegated Premier League clubs have been extended in scale and duration as a result of new broadcasting deals, many Championship clubs are feeling the pain of operating in a very tough economic environment."

Whilst broadcast and commercial revenue increased for Premier League clubs to £1,040m (the first £1 billion revenue stream of any domestic football league) and £459m respectively, matchday revenue fell by 7% although this was attributed to the relegation of Newcastle United (who played in the npower Championship in the 2009/10 season) and reduced revenue from clubs in the UEFA Champions League, who exited the competition earlier.


Scott Hobro

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