- Premier League clubs report first pre-tax profit since 1998/99 of £190m in 2013/14
- Profit almost four times the previous record of £49m in 1997/98
- Clubs generate record operating profit of £620m – over three times previous record of £185m in 2007/08
- Premier League revenues rise 29% from £2.5bn to £3.3bn…
- …but wages grow by just 6% from £1.8bn to £1.9bn – far less than expected
Premier League clubs generated a combined pre-tax profit of £190m in 2013/14, according to Deloitte, the business advisory firm. The first pre-tax profit in 15 years, the figure is almost four times greater than the previous record of £49m set in 1997/98. This is in sharp contrast to the £2.6 billion of pre-tax losses accumulated over the previous decade.
At an operating profit level (which excludes player trading, net interest charges and the reduction in value of player contracts) Premier League clubs recorded a staggering £620m. This is over three times previous record of £185m in 2007/08, seven-and-a-half times the £82m recorded in 2012/13 and greater than the previous six seasons combined.
Dan Jones, Partner in the Sports Business Group at Deloitte, explained: “Last season was the first in the Premier League’s current three-year broadcast deal, which was a record breaker when it was struck. Combined with strong commercial growth at the highest revenue generating clubs, this has boosted Premier League revenue 29% to a record £3.3bn. However, despite this extra income clubs showed relative restraint in wage costs, which grew by 6% to £1.9bn.
With this record profit, the question now will be whether we are at the start of a new era of responsible spending and sustained profitability, and if so, how clubs will spend this money.