Football’s revenue growth overshadowed by wages
PROFESSIONAL football clubs in the region grew revenues by 11% to £930m in the 2009-10 season, it emerged today.
The North West figure accounts for more than a third of the total turnover among the 92 English clubs.
Figures from accountancy giant Deloitte in its Annual Survey of Football Finance also reveal that although revenues rose 5% to £2.7bn player wage costs surged too.
In the Premier League – which accounts for the lion’s share of revenues, a 2% rise to £2.03bn, was outstripped by wage inflation of 5%.
The total wage bill of the 20 Premier League clubs in 2009-2010 was £1.4bn, resulting in a record wages to revenue ratio of 68%. Worryingly Premier League clubs made record pre-tax losses of £445m.
From a North West point of view, four clubs are in the top 10 Premier League clubs by revenue, with Manchester United taking top spot with £286m, Liverpool in 4th with £185m, Manchester City fifth with £125m (a 44% rise) and Everton in eighth on £79m.
In terms of employment, Deloitte said North West clubs employed around 3,000 full-time staff, but support many other positions on match-days, and that 8.5 million people attended matches in the region during that season.
Burnley’s one season in the top flight, saw its revenues rocket 300% to £45.8m – a leap Blackpool can expect for the last season.
As a result of not over-spending on players and wages during the season, Burnley made operating profits of £16m – the fifth highest figure in the Premier League that year.
Big-spending Manchester City – which can expect a big surge in revenues of between £30m to £50m next season having won a place in the Champion’s League – spent more than £100m on transfers for a second year, with £145m in 2009/10, at £145m, up from £138m in 2008/09.
Dan Jones, pictured, Manchester-based partner in Deloitte’s Sports Business Group said despite the recession Premier League football had shown “remarkable recession resistance.”
“There are three reasons for this – pay TV revenues have really held up during the recession, clubs have been realistic and sensible in regard to ticket pricing, and commercial revenues have held-up too.”
He expects this picture to continue too – a new TV deal came into force last year and will boost revenues for the 2010-11 season.
“We believe the English Premier League will be €1bn ahead of the other leagues as a result, he added.”
Deloitte say he challenge for the leading clubs is to convert revenue growth into “sustainable profits that allow for investment in both infrastructure and talent”.
The firm says cost control is the key issue facing the sport at all levels, and welcomes the advent of UEFA financial fair play rules, which will come into force in the next two years.
Paul Rawnsley, director in the Sports Business Group, said: “Premier League clubs should be well placed to comply with UEFA’s regulations, as the Premier League remains the top revenue generating league in Europe.
“Clubs have time to make adjustments to their business plans before the new regulations are effective, as well as increased broadcast revenue from 2010/11 to help deliver a better balance between spending on players and revenue generation.”
