What makes English Premier League so lucrative?


The most coveted professional football competition kicked off on Saturday, August 12, with the Gunners taking on Leicester in a thrilling seven-goal match and the new signing Alexander Lacazatte scoring on his debut PL match just within 2 mins. This is what makes it more lucrative a deal for football fans and makes it a business opportunity to pounce upon.

The upcoming season is expected to re-define the grandeur that Premier League is and has been. The numbers around the previous seasons are a proof of its splendour.

The Delloitte’s annual review of the football finance report has predicted Premier League Club’s total revenue at £ 4.5 billion for the 2017-2018 season. Such an amount, unquestionably cements the status of EPL as the world’s richest league.

While the latest accounts are yet to be published, the figure is believed to have increased considerably from the last term, as 2016-17 was the first year of the new television rights deal, which saw an increase from £5.14bn in 2013-16 to £8.4bn (England and global combined) from 2016‑19. That makes it a whooping £2.8bn per season. This uplift will be seen in the clubs’ accounts for the previous season when they are published and a similar rise or maybe higher will be seen in the season that has just started.

Additionally, the Premier League TV deal for England rights for the 2016-2019 three-year period has been closed at £ 5.136 billion, a 71% jump over the previous three-year rights period. This amounts to £ 10.19 million per game.

The global media rights for the 2016-2019 cycle are earning EPL £1 billion per annum, according to estimated figures. The league worldwide is being broadcast by 135 broadcasters.

The most recent published accounts state that the financial statements of the clubs in the Premier League for 2015-16 saw a £200m rise than in the previous year. That in itself is a record.

The biggest earner was Manchester United, with the club accounts showing an income of £515m, that is £123m higher than the club standing next, Manchester City.

2015-16 figures show wages paid to all staff and not just players was £2.247bn. That is a £200m increase on 2014-15 but it remained steady and as per experts seen to be proportionally sustainable at 61% of the clubs’ total income.

In 2012-13 clubs spent 67% of their income on wages and 12 clubs made a loss. In 2015-16, 12 clubs made a profit, although the clubs made an overall loss of £117m last year due to significant losses by Chelsea, £85m, relegated Aston Villa, £81m, Sunderland, £33m and Everton, £24m.

This season has already shown that the clubs are ready to splash big money to recruit their favourite players. Last summer was the first time top flight clubs spent more than a billion – but this time the mark is passed with three weeks still left for the transfer window to slam shut.

If another £118m is splashed out, that will be enough for this season to become the most expensive in football history.

And with Chelsea, Manchester United, Tottenham and Arsenal still looking to put signatures on their chequebooks again, the total spend is likely to be closer to £1.25bn by the start of September.

Manchester City are the biggest spenders so far this summer, having got most of their business done early paying £218m for six players as Pep Guardiola goes hard for a title challenge.

Local rivals Manchester United have also showed money is no object to their ambitions to deliver a squad for Jose Mourinho, and £145.8m has been spent on just three players this summer to do that.

Deloitte forecast that 2016-17 could well be the first season in which every Premier League team was profitable. No club has gone into administration through the entire English professional pyramid since 2013. Net debt in the Premier League has reduced while wages, as a percentage of revenue, remain relatively constant.

The question about value for money, however, surely still stands. The clubs might be able to afford what they are paying – and they are actually committing comparably less of their increased revenues to player wages – but those salaries are still more than double any other league.

Not only does the Premier League now have the richest group of clubs but also the least needy sellers, who are themselves owned by largely successful and proud billionaires.