Premier League football clubs have reportedly recorded a record aggregate revenue of $ 6.2 billion. However, this did not suffice for the top clubs to maintain their profits.
According to a Deloitte report, Premier League clubs profit has taken a 16% hit in spite of climb in their overall revenue. A 15% rise in the wage bill to $3.7 billion is attributed as the main cause of deficit in operating profit, which has reportedly fallen to $ 1.2 billion. The profit before tax has reportedly fallen to $515 million.
The wage-to-revenue ratio for the league has risen from 55% to 59%, Sportspromedia.com has reported, citing the Deloitte findings.
The report states that the 6% revenue increase is ‘in part attributable’ to England’s top flight league, from where five teams have made it to the Uefa Champions League pre-quarter-finals. This performance has resulted in an increase of $91.5 million in Champions League distributions to Premier League clubs.
Premier League’s big six clubs – Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham Hotspur – have reportedly accounted for 89% of the division’s pre-tax profits, up 36% to $517 million, financial data firm Vysyble has revealed.
Premier League clubs, according to Deloitte, dominate the top ten rich clubs list. The gap between the top- and the bottom-placed clubs is widening. The revenue gap from Premier League champions Manchester City and bottom-placed West Bromwich Albion at $599 million has been the biggest ever.
The gap between the big six and the rest of the Premier League is likely to increase next season, when English football’s top flight plans to distribute any increase in international rights revenue based on each team’s final position in the table.
Clubs’ operating profits could also be hit once again when the Premier League’s new three-year domestic rights deal kicks in at the start of the 2019/20 campaign, with the new agreement falling short of the $ 6.63 billion secured last time around.