Premier League Clubs Face Significant Profit Decline, while Overall European Market Rebounds
In the 2022-23 season, Premier League clubs’ operating profits took a substantial hit, with pre-tax losses also rising sharply, according to new figures from Deloitte. The football ecosystem, however, remains thriving, with revenue exceeding £6 billion for the first time.
The latest annual review of football finance confirms that England’s top flight remains the dominant force in the European landscape, which has comprehensively recovered from the COVID-19 pandemic. Yet, beneath the headline figures, there are concerning developments, and the report also shows that Championship clubs continue to suffer heavy losses, despite a 10% revenue increase.
Premier League Challenges
Excluding player trading, Premier League operating profits dipped by 18% to £393 million. This was attributed partly to inflation and an increase in net debt owed largely to infrastructure investments. The 14% rise in pre-tax losses, totaling £685 million, was partially explained by a 10% hike in wage costs and the effects of amortization.
European Market Recovery
While the Premier League’s aggregate revenue increased by 11% to £6.1 billion, with healthy rises in matchday, commercial, and broadcast incomes, the cross-continental picture has also brightened significantly. Collectively, the European market grew by 16% to €35.3 billion (£29.9 billion), largely due to the lifting of COVID-19 restrictions in countries like Germany and Italy. Top-flight clubs in both countries experienced 22% increases in revenue compared to the 2021-22 season. The “big five” leagues, including France and Spain, recorded an aggregate operating profit of €500 million, marking the first profitable season since 2018-19.
Industry Challenges and Opportunities
Tim Bridge, lead partner in Deloitte’s sports business group, welcomed the figures but warned that the sport faces crucial decisions about its future direction. He emphasized the need for a united front among industry leaders in following good governance principles to build an exciting future for European football.
Football League and Women’s Game
Regarding the Football League, the report showed revenue increases of 10% in the Championship, 9% in League One, and 1% in League Two. However, the Championship’s figure masks concerns about its sustainability, as operating losses hit £316 million, and none of its 24 clubs generated an operating profit outside player trading.
In the women’s game, positive figures were reported, with Women’s Super League clubs’ aggregate revenue rising by 50% to £48 million, partially attributed to the “Lionesses lift” after England’s victory in Euro 2022.
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