Premier League Clubs Generate Collective Profit for First time in 15 years
Thanks to increases in broadcasting and commercial revenues, Premier League clubs have generated a profit for the first time in 15 years. Though each clubs totals have not been revealed, the profit is a step forward for the English FA and Premier League as a whole.
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The pre-tax profit of £190m for the in 2013-2014 can also be attributed to the cost control and financial fair play rules put into place by UEFA. The reduction in spending now figures to help stabilize a game where the very rich controlled most of the worlds star power.
The figures — released by British company Deloitte — do not show the debt taken on by the Premier League clubs during this time. The charts only show the revenue the club gained during the time period as well as the money spent on operational costs.
While the combined revenue of the Premier League clubs grew by 29% from £2.5 billion to £3.3 billion, the player wages failed to sustain a major increase. With wages only slightly rising from £1.8 billion to £1.9 billion, UEFA’s financial rules have proven to be successful at this early stage.
Deloitte senior consultant Adam Bull also added his take that the financial control rules set by UEFA played a part in the Premier League’s upturn.
"“The introduction of cost control regulations at both a European and domestic level has caused many clubs to watch their spending more closely than ever before and created a useful tool for clubs to reduce the inflationary pressures during negotiations with players and agents.”"
Bull also believed the back-to-back record breaking television deals played an important role in the revenue each Premier League club generated during the past year.
"“The current broadcast deal has given Premier League clubs such a large revenue advantage over the vast majority of European clubs that they can still attract the top playing talent without over stretching themselves financially.”"
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Deloitte Sports Business partner Dan Jones believes that thanks to these record breaking deals, Premier League clubs now have a chance at success on the field and in the pocketbook.
"“The primary aim of a football club is, and always should be, on-pitch success for the fans. However, we do welcome these results, which show that the Premier League clubs are starting to convert their impressive revenue growth into a more sustainable net result.”"
Jones also believes that the new television deal scheduled to begin for the 2016-2017 season should allow this year’s profit to become to become a regular occurrence.
"“With the recent announcement of another record Premier League broadcast deal, the revenue increases show no sign of ending and should make this season’s profit a regular outcome.”"
With the turn in profit, the Premier League has a chance at not only becoming the best soccer league in the world, but the most profitable from the top to the bottom of the table for years to come.