Skip to main content

"If you want some accessible but informative insight into football then I suggest you couldn't do better than the Political Economy of Football website, which is not only intelligible but comes with the added bonus of being written by Addicks fan Wyn Grant."
Ben Hayes - Charlton Athletic programme

Premier League clubs slump into loss

Share/Save

Premier League clubs have made a combined loss for the first time in three years.   Clubs in the Premier League posted combined revenues of £3.6bn for the 2015-16 season, a 9 per cent rise from the previous year, according to Deloitte. 

However, spending on players has outpaced revenue growth.   Wages increased 12 per cent to £2,3bn which along with other costs, such as splashing out on transfer fees, helped to push clubs into a combined pre-tax loss of £110m.

Clubs have increased their spending in anticipation of the cash windfall from the league's new £5.1bn domestic tv rights deal.   About £1bn was spent on transfer fees in last summer's window.

Clubs have in fact made a combined loss for 15 of the last 17 seasons, but the combined profit achieved in the last two seasons had led to hopes of a new prudence.   However, Deloitte does expect to see a return to profitability in 2016/17.

Dan Jones, partner and head of the Sports Business Group at Deloitte, commented: 'The 2015-16 season saw Premier League clubs grow revenues by almost 10% to £3.6bn, with the two Manchester clubs alone responsible for more than 50% of the increase.

'Manchester United’s participation in the 2015/16 UEFA Champions League, coupled with continued strong commercial revenue growth, resulted in a 30% increase in revenue to £515m. This saw them top the Deloitte Football Money League for the first time since 2003/04, as the world’s highest revenue-generating club.

'Increased distributions to clubs competing in Europe, under the new UEFA broadcast rights cycle – notably Manchester City, who reached the semi-finals of the UEFA Champions League – also contributed to Premier League clubs’ revenue growth.'