For the first time in fifteen years, the Premier League registered a significant profit. This was according to a report by sports business analysts on Wednesday.
According to Dan Jones of Deloitte’s Sports Business Group, the league registered a combined profit of more than £190 million for all the 20 teams in the 2013-2014 season. This, Jones said, is at least four times the previous record of £49 million, set during the 1997-1998 season. This is also the first pre-tax profit that the league has posted since 1999.
Aside from the combined profit, the league has also posted an operating profit of more than £629 million, which is greater than the previous six seasons combined.
Experts attribute this positive growth to the new three-year broadcasting deal that the league has signed up. “Last season was the first in the Premier League’s current three-year broadcast deal, which was a record breaker when it was struck,” Jones said.
“In the first year of the preceding two broadcast deals, 56% and 81% of respective revenue growth was absorbed by wage costs. This time it is less than 20%. Over the previous ten seasons wages grew by around 9% per year, which is higher than the average annual revenue growth of 7% over that period, demonstrating further what a remarkable turnaround the 2013/14 figures represent.”
Jones also noted the positive impact of the revenue profit on the league. “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,” he said.
“Such profits provide the clubs with a great opportunity to invest further in their facilities and youth development activities, but will also no doubt make Premier League clubs even more attractive to potential investors than they already were. They can now be reasonably profitable businesses as well as trophy assets.”