Global investment in English clubs looks set to increase next year. Alan Switzer, a director in Deloitte Sport Business Group, forecast, 'We expect to see further investment in English clubs in 2008 as more Premier League and Championship clubs come under the management of investors from around the globe.' He noted that English football remains the financial powerhouse of Europe, accounting for 23 per cent of the entire European football market, a share set to increase as the new tv rights deal comes on line in 2007/8. Deloitte estimate that Premiership revenues were a record £1,465bn in the 2006/7 season. Gross transfer spending by English clubs hit a new record of £500m in the summer of 2007, two-thirds higher than the summer 2006 record of £300m. The average fee paid by Premiership clubs increased from £3.5m in summer 2006 to £40m. The financial prize for promotion to the Premiership increased from £40m in 2006 to £60m in 2007 (but note that this figure includes two years of parachute payments). 2.9 billion people around the world watched Premiership matches on television in 203 territories.
Premier League clubs' revenues will increase significantly in 2007/08 to over £1.75bn with the onset of the new television deal. The operating profitability of Premiership clubs is expected to exceed £200m for the first time in 2007/08. Total spending on the wages of all employees at Premiership clubs will exceed £1 billion for the first time.
We will be monitoring these and other developments throughout 2007/8. May we wish all our readers a happy and prosperous new year and express the hope that their clubs are able to focus on success on the pitch rather than financial problems. For all the criticism it attracts, football is a source of pleasure to billions of people across the world, whether they just watch it or play it.
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