annual review of football finance 2016

Sports Business Group June 2016

RebootAnnual Review of Football Finance 2016

As the Premier League looks forward to its 25th season, the Deloitte Annual Review of Football Finance has now completed its quarter century of documenting English professional football’s business and commercial performance.

Europe’s premier leagues

Annual Review of Football Finance 2016 Sports Business Group

Of additional revenue generated by the ‘big five’ European leagues in 2014/15 was spent

on wage costs

89%

From 2016/17 Premier League broadcast rights deals will be worth more than the combined broadcast revenues of the Bundesliga, La Liga and Serie A combined.

‘Big five’ European league clubs’ revenues – 2014/15 (€m)

0

2,000

3,000

4,000

5,000

England Germany Spain Italy France

1,000

1,29529%

2,33753%

73131%

67328%

64331%

97548%

48327%

1,09961%

62844%

76818% 521

22%

46719%

4,400

2,3922,053

1,792

1,418

16512%

31822% 307

22%

21012%435

21%

43619%

Matchday Broadcasting Other commercialSponsorship/commercial

220 133 90103 71

Average club revenue (€m)

36,163 42,685 21,58625,734 22,329

Average match attendance

96 90 5271 71

Stadium utilisation (%)

Premier League clubs


Premier League clubs’ revenues – 2012/13 to 2016/17 (£m)

0

2,000

3,000

5,000

4,000

1,000

2012/13 2013/14 2014/15

3,259

89727%

1,75854%

60419%

2015/16 2016/17

Matchday

Broadcast

Commercial

Average revenueper club

2,525

74930%

1,19147%

58523%

3,347

98529%

1,77853%

58418%

3,570

1,10031%

1,86052%

61017%

4,320

1,12026%

2,59060%

126 163 167 179 216

61014%

Projected

0

2,000

3,000

5,000

4,000

1,000

2012/13 2013/14 2014/15

3,259

89727%

1,75854%

60419%

2015/16 2016/17

Matchday

Broadcast

Commercial

Average revenueper club

2,525

74930%

1,19147%

58523%

3,347

98529%

1,77853%

58418%

3,570

1,10031%

1,86052%

61017%

4,320

1,12026%

2,59060%

126 163 167 179 216

61014%

Projected

c.£95m-£150mPremier League central distributions to clubs

in 2016/17

By half-time of the second Premier League game that is televised domestically in 2016/17, more broadcast revenue will have been generated than by all the First Division matches combined 25 years ago.

Premier League clubs


Burnley’s wages/revenue ratio of 37% was the lowest in the Premier League since Manchester United recorded 33% in 1998/99.

Premier League clubs’ revenue and wage costs – 2014/15 (£m)

0

200

300

400

100

Wage costs Wages/revenue ratioRevenue

52%

395

204

Man

Uni

ted

194

353

55%

Man

City

192

331

58%

Ars

enal

217

319

68%

Che

lsea

167

298

56%

Live

rpoo

l

107

196

55%

Tott

enha

m H

otsp

ur

102

167

61%

Ave

rage

65

129

51%

New

cast

le U

nite

d

78

126

62%

Ever

ton

73

122

59%W

est

Ham

Uni

ted

80

114

71%

Sout

ham

pton

87113

77%

Ast

on V

illa

57

104

55%

Leic

este

r C

ity

6899

68%

Cry

stal

Pal

ace

77101

76%

Sund

erla

nd

83103

n/a

Swan

sea

City

67100

67%

Stok

e C

ity

7096

73%

Wes

t Br

omw

ich

Alb

ion

73

86

85%

Que

ens

Park

Ran

gers

5684

66%

Hul

l City

29

79

37%

Burn

ley

Football League clubs


Football League clubs’ revenues and wage costs – 2013/14 and 2014/15 (£m)

0

200

300

400

500

600

Championship

2013/14 2014/15 2013/14 2014/15 2013/14 2014/15

League 1 League 2

100

106% 99% 84% 86% 74% 72%

22 23 5.1 4.5 2.4 2.5

5958

107122

541518

548

490

124145

8278

Wage costs

Revenue

Wages/revenue ratio

Average wage costs per club

Future incremental revenue for a non-parachute

club promoted from the Championship in 2015/16

£170m+

Wage costs were greater than total revenue for nine Championship clubs in 2014/15.

Player transfers


Premier League and Football League clubs’ player transfer payments – 2014/15 (£m)

Premier League clubsWithin PL clubs

£276m

Premier League total£1,108m

Non-Englishclubs

Football League clubsWithin FL clubs

£54m

Football League total£137m

Agents

£627m

£35m£8m

£200m£130m

£30m

£18m£75m

Premier League clubs’ gross player transfer spending in

summer 2016 may exceed

£1 billion

In the 2014/15 season the Premier League and Football League clubs spent a record £1.2 billion on acquiring new players.

Stadia


of capital expenditure – the most ever invested in

a season

£305m

Premier League and Football League clubs’ expenditure on stadia and other facilities – 2013/14 and 2014/15 (£m)

36

228

53

21

212

4913

305280

0

200

300

400

2013/14 2014/15

100

Championship

League 1

League 2

Premier League

Source: Deloitte analysis

The aggregate attendance for Premier League and Football league matches reached 30 million in 2015/16.

Sports Business GroupDan Jones, Paul Rawnsley, Alan Switzer, Austin Houlihan and Adam BullTelephone: +44 (0)161 455 8787E-mail: [email protected]/sportsbusinessgroup

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