Premier League revenue increases to record levels

The combined revenue of the 20 Premier League clubs for 2011/12 reached a record total of almost £2.4bn, Sky Sports has reported. In total, the revenue of the 92 clubs that make up the Football League exceeded £3bn for the first time, a study by financial firm Deloitte has revealed.

The Premier League figure shows a 4% increase on the year before, despite continued concern over the wider financial markets. Dan Jones of Deloitte said: “ Despite operating in a challenging economic environment, English club football’s profile, exposure and increasingly global interest have continued to drive revenue growth for the top clubs.

Nearly three-quarters of the Premier League clubs’ revenue increase was spent of wages, the report added, with wages accounting for £1.7bn of the total. The top flight’s wages-to-revenue ratio remained steady at around 70%.

The Championship saw a revenue increase of 13% – equivalent to £53m – with the total for the second tier standing at £476m. Deloitte found that the upswing in the Championship was down to parachute payments for clubs dropping out of the Premier League, while the wages-to-revenue ration for the Championship was at 90%.

Deloitte described the 90% figure as “threatening” and, in light of record losses being posted by the Championship clubs, added: “The Football League’s Financial Fair Play Rules look to be a necessary step to help change clubs’ behaviour in respect of spending on players.

The application of sanctions in respect of the clubs’ results for the 2013/14 season should focus the minds of clubs who have been making heavy losses.

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