Thursday, May 24, 2018

Manchester United and Manchester City help Premier League clubs set record revenues

SoccerNews in General Soccer News 19 Apr 2017


Manchester United and Manchester City were the major contributing clubs as Premier League teams set a new record for revenues in the 2015-16 season, earning a total of £3.6billion.

The report from business advisory firm Deloitte showed combined revenues were up by nine per cent from figures in 2014-15, but clubs recorded collective pre-tax losses of £110million, while operating profits were stable at £0.5billion.

United’s return to the Champions League, coupled with City reaching the semi-finals of the competition, were among the main reasons for Premier League clubs setting record revenues, while wage costs were highlighted as one of the biggest driving factors in the return to an overall loss after two years in the black.

Dan Jones, partner and head of the Sports Business Group at Deloitte, said: “The 2015-16 season saw Premier League clubs grow revenues by almost 10 per cent to £3.6billion, with the two Manchester clubs alone responsible for more than 50 per cent of the increase.

“Manchester United’s participation in the 2015-16 Champions League, coupled with continued strong commercial revenue growth, resulted in a 30 per cent increase in revenue to £515million. This saw them top the Deloitte Football Money League for the first time since 2003-04, as the world’s highest revenue-generating club.

“Increased distributions to clubs competing in Europe, under the new UEFA broadcast rights cycle – notably Manchester City, who reached the semi-finals of the Champions League – also contributed to Premier League clubs revenue growth.

“Our analysis reveals a return to pre-tax losses, following two consecutive years of pre-tax profits.

“However, it is worth noting that this is due to a small number of one-off “exceptional” costs, and we fully expect that the Premier League’s new three-year broadcast rights deal will see a return to record levels of profitability in the 2016-17 season.”


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