Monday 11 December 2017

Deloitte figures reveal pre-tax losses for top clubs despite record revenues

Manchester United generated the highest revenue of any club in world football in 2015/16
Manchester United generated the highest revenue of any club in world football in 2015/16

Premier League clubs achieved record revenues for the 2015/16 season but posted overall pre-tax losses, figures released by Deloitte reveal.

Revenues increased to £3.6billion, up £0.2billion from the previous campaign, with Manchester United and Manchester City responsible for more than half of the rise.

United's revenue grew to £515million, which saw them top the Deloitte Football Money League for the first time since 2003/04 as the world's highest revenue-generating club.

The combined operating profits of the 20 clubs remained stable at £0.5billion, with w age costs increasing by 12 per cent to £2.3billion.

But, after two consecutive seasons of pre-tax profits, the clubs were back in the red with pre-tax losses of £110million.

Dan Jones, partner and head of the Sports Business Group at Deloitte, said : "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."

Sky and BT paid a record £5.136billion for the latest round of TV rights - 71 per cent higher than the previous deal.

Adam Bull, senior consultant in the Sports Business Group at Deloitte, added: "We have already seen to some extent the impact of the current broadcast rights deal, with clubs' combined transfer expenditure over the course of the 2016/17 season reaching almost £1.4 billion - eclipsing the previous record set in 2015/16 by one third and far exceeding any other league in world football."

Press Association

Promoted Links

Sport Newsletter

The best sport action straight to your inbox every morning.

Promoted Links

Editor's Choice

Also in Sport