Premier League clubs post record revenues as Europe recovers from COVID-19 impact

Premier league clubs post record revenues as europe recovers from covid-19 impact0

According to a research conducted by Deloitte, Premier League club revenues increased by 12% to a record high of 5.5 billion pounds ($6.96 billion) in the 2021-22 season. This was the result of European football capitalizing on fans returning to stadiums following the COVID-19 epidemic.

According to Deloitte’s Sports Business Group’s Annual Review of Football Finance, the “big five” leagues in England, Spain, Germany, Italy, and France had a combined 10% rise in revenues. Spain’s LaLiga rose 11% to 3.3 billion euros ($3.57 billion), while France’s Ligue 1 shot up 26% to 2 billion euros. England’s Premier League saw a rise in revenues of 5%, while Germany’s Bundesliga saw a rise of 4%.

The only one of the five leagues to report a drop in income was Italy’s Serie A, which saw its total drop to 2.4 billion euros, a decline of 7%.

The Premier League’s matchday income improved to 763 million pounds in 2021-22, which was a significant increase from the pre-pandemic level of 684 million euros in the 2018-19 season. During the 2020-21 season, a significant number of the games in the Premier League were played behind closed doors, which contributed to the decline in matchday revenue.

“Topline figures show that European football has emerged resiliently from its most challenging period to date,” said Tim Bridge, senior partner in Deloitte’s Sports Business Group. “Topline figures”

“After the restrictions imposed by COVID-19 were lifted, fans’ pent-up demand led to record matchday and commercial revenues across Europe.”

The operational earnings of the main five leagues have decreased by 1.8 billion euros since the 2018-19 season, despite the fact that revenues have increased. This is in part owing to a 15% increase in salary expenses.

The new “sustainability regulations” of UEFA, which were enacted in 2022 and prohibit teams to spending no more than 70% of their income on their squads, will need clubs to alter their salary expenses in the future so that they can remain compliant with the laws.

In 2022, the restrictions were finally put into effect. After a transition period of three years, we will finally attain the target percentage of 70%, which will have been steadily reduced from 90%.

According to Bridge, “the focus for all clubs must now shift to ensure long-term financial sustainability across the football system,” and the introduction of new laws across European football are well timed to assist this. “The introduction of new regulations across European football are appropriately timed to support this,” Bridge stated.

“Record growth in the Premier League continues to increase revenue polarisation between and within European football leagues,” as well as “every league faces new challenges brought about by increased competition, regulation, and the strain of a challenging macroeconomic climate.”

As a result of the takeovers of Chelsea and Newcastle United, the total aggregate net debt in the top division of English football dropped by 34% to 2.7 billion pounds in the 2021-22 season.

However, salary expenditures outpaced earnings for the sixth year in a row, despite the fact that the second-tier Championship’s net debt had decreased by 110 million pounds.

According to Bridge, “the net debt of Championship clubs continues to be significant,” and a large majority of clubs are planning to increase their loan amounts throughout the course of the 2021/22 season.

“The glamour of Premier League promotion is spearheading the continual drive for investment in Championship clubs, often in an unsustainable manner, which is driving some clubs to overstretch financially.”

more insights