EPL: Clubs post pre-tax losses despite record revenues – Report

Posted on Apr 20 2017 - 7:10am by admin

Increased wage costs, up by 12 percent to £2.3 billion, were the main factor in the combined losses of England's 20 elite clubs

The report revenues have been nine % better than the previous high complete of £three.4 billion posted in the 2014-15 marketing campaign.

leading League clubs' revenues hit a new report of £three.6 billion within the 2015-16 season, however prime-flight groups still recorded pre-tax losses of £a hundred and ten million, according to sports activities finance consultants Deloitte.

The file revenues were nine % better than the earlier high complete of £three.4 billion posted in the 2014-15 campaign, with Manchester United and Manchester metropolis liable for more than half of the upward thrust.

United's earnings grew to £515 million, which noticed them top the Deloitte soccer cash League for the first time due to the fact that 2003-04 as the arena's very best earnings-producing membership

elevated wage prices, up by way of 12 % to £2.three billion, had been the primary issue within the blended losses of England's 20 elite golf equipment.

it’s the first time best League groups have posted an mixture pre-tax loss because the 2012-13 season.

Dan Jones, companion and head of the sports trade group at Deloitte, said: "The 2015-sixteen season saw superior League clubs grow revenues with the aid of nearly 10% to £three.6bn, with the two Manchester clubs on my own chargeable for more than 50% of the increase.

"Manchester United's participation within the 2015/sixteen UEFA Champions League, coupled with persisted strong business revenue boom, resulted in a 30% increase in income to £515m.

"Our prognosis finds a return to pre-tax losses, following two consecutive years of pre-tax profits.

"however, it’s worth noting that that is as a result of a small number of one-off 'exceptional' prices, and we totally predict that the most efficient League's new three-yr broadcast rights deal will see a return to report ranges of profitability in the 2016-17 season."

Sky and BT paid a file £5.136 billion for the newest round of tv rights, a sum seventy one per cent better than the previous deal.

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