Top 10 NW clubs’ revenue hits £1bn says Deloitte
THE region’s 10 top Premier League and Football League clubs grew revenues by 12% to more than £1bn last year, according to the annual football finance survey by business advisers Deloitte.
The 10 – led by Manchester United which accounts for more than 30% of the total of £1.01bn – represent more than a third of the UK total, and underlines both the importance of the sport to this region, and its status as the football’s heartland.
During 2010-11 there were more than 8 million attendees at professional club football matches in the North West in 2010/11 . The region’s clubs employ 4,000 full-time members of staff in 2010/11.
The Annual Report of Football Finance, produced by Deloitte’s Manchester-based Sports Business Group, reveal that Premier League clubs’ combined turnover reached a record £2.3bn in 2010/11, a 12% increase on a year earlier.
Wage cost inflation however continued to out-strip revenue growth with an increase of 14% to £1.6bn.
As the table shows, Manchester United – which yesterday claimed to have a staggering 659 million fans worldwide – grew its revenues 16% due to its continued commercial success and also its progress to the final of the Champions League.
Manchester City – despite not participating in the UEFA Champions League that season – still grew turnover by 22%.
Following its promotion to the top flight through the 2010 play-offs, Blackpool’s revenues rocketed 449% to £51.8m. Having opted not to spend big to try and ensure Premier League survival, the club’s operating profits of £22m was the the fourth highest in the Premier League.
Paul Rawnsley, director at the Sports Business Group, said: “Once again, the report highlights the significance of North West clubs and their contribution to the UK’s football economy.
“It is encouraging to note that eight out of the top 10 clubs from the region saw revenue increase during 2010/11, despite a difficult economic climate. However, cost control remains the game’s biggest challenge and the upcoming Financial Fair play regulations from both UEFA and the Football League should help clubs focus on achieving a better balance between cost and revenues in future.”
The research Manchester United again had the highest operating profit in the Premier League in 2010/11, exceeding £100m for the first time . Rivals Manchester City’s operating loss of £82m was the highest in the Premier League for the second successive season after continued investment in the playing squad under the ownership of Abu Dhabi’s billionaire Sheikh Mansour.
Gross transfer fee expenditure by City was £165m, was followed closely by Liverpool (£131m) after the acquisition by the Fenway Sports Group, Between them, the two clubs accounted for around 38% of total transfer expenditure of £769m in the Premier League in 2010/11.
