• Dear Guest, Please note that adult content is not permitted on this forum. We have had our Google ads disabled at times due to some posts that were found from some time ago. Please do not post adult content and if you see any already on the forum, please report the post so that we can deal with it. Adult content is allowed in the glory hole - you will have to request permission to access it. Thanks, scara

Annual Review of Football Finance 2013

Premier League revenues to top £3bn despite rise in footballers' wages

Premier League clubs' revenue will top £3bn for the first time next season, despite a rise in footballers' wages, according to football finance experts at Deloitte.

Combined revenue at the 20 clubs in the top-flight of English football is estimated to have grown to £2.5bn in the 2012/2013 season, up 5pc from the previous year and is estimated to grow by a further 25pc next year, by £600m, when the league's new broadcast deals kicks in.

Clubs are set to receive an average of £73m from TV rights, which make up 50pc of revenues, this coming season. That is up £25m from 2011/2012, according to Deloitte's annual review of football finances.

Almost 75pc of the Premier League clubs' revenue increase in 2011-12 was spent on wages, which increased by £64m, or 4pc, to £1.7bn. It meant the overall Premier League wages-to-revenue ratio remained at 70pc.

Wages are estimated to have risen to roughly £1.8bn in the 2012/2013 season.

deloitte_2582833c.jpg


Despite pressure on clubs to contain soaring wages, they are expected to plough around £480m of the extra TV cash into wages.

The wages-to-revenue ratio is a well-established key performance indicator for football clubs, Deloitte said. It noted that in the 2011/2012, of the 28 clubs from the top two tiers of English football with a wages-to-revenue ratio of more than 70pc, only four reported an operating profit.

Alan Switzer, director in the sports business group at Deloitte, said: "The Premier League clubs have agreed to a system of enhanced financial regulations, designed to improve the sustainability of its clubs.

"The successful implementation of these rules, coupled with the imminent boost to broadcast revenues, could provide huge benefits to the long-term development, growth and stability of the game and its clubs."

wage-revenue-ratio_2582950c.jpg


Emirates Marketing Project was the best-paying club in 2011/2012, with wages of £202m, while Swansea City was the lowest, handing its players £35m.

Aston Villa spent the biggest slice of its revenues on wages, at 94pc, while Norwich City spent just 49pc, the lowest in the top tier.

Manchester United earned the most in 2011/2012, with revenues of £320m, while Wigan Athletic earned the lowest at £53m.

In the Championship, Deloitte said revenues "held up well" but warned that the wages-to-revenue rate had continued to hover at a "threatening" 90pc for the past four seasons, with operating losses once again reaching record levels in 2011/2012.

Spending on wages increased by 11pc to £422m in 2011/2012. Deloitte says this was driven in part by the number of clubs being in receipt of parachute payments from the Premier League and the change in the mix of clubs.

West Ham United, which has now been promoted to the Premier League, spent £4m on wages, while Peterborough United, which has been relegated, spent £6m.

"The Football League’s Financial Fair Play Rules look to be a necessary step to help change clubs’ behaviour in respect of spending on players," said Paul Rawnsley, director in the sports business group at Deloitte.

"The application of sanctions in respect of the clubs’ results for the 2013/2014 season should focus the minds of clubs who have been making heavy losses.”

europe-deloitte-fo_2582840c.jpg


While the Premier League has the highest revenue of any in European football, Germany remained Europe’s most profitable league as stricter licensing rules curbed clubs’ spending on player wages. Bundesliga clubs had a combined equivalent of £154 million of operating profit in 2011/2012, compared with £98 million for the Premier League, Deloitte said.

The Bundesliga will also enjoy a significant increase in revenue next season, Deloitte added, due to their domestic broadcast deals, which are up roughly 50pc.

Spain's La Liga and Italy's Serie A have seen revenues remain subdued by the economic conditions of the country.

La Liga highly polarised, with more than half of the entire league's revenue linked to Barcelona and Real Madrid, due to their ability to sell their own broadcast rights.

In Italy, the clubs are heavily reliant on broadcast money, which makes up 59pc of their revenue. Relatively weak match day revenues, which are down 3pc, have also hit the clubs' finances.

http://www.telegraph.co.uk/finance/...op-3bn-despite-rise-in-footballers-wages.html
 
Barca and Real probably make up at least one third of the wages in La Liga on their own.
 
peterborough spent 2m more on wages then west ham:-k i know the finacial fair play rules are coming into effect this season in the championship, so i think it shows that some clubs need rules to follow or they will just go into debt.

Also read somewhere that Zigic at Birmingham is on 60,000 a week and has a year left but birmingham can not afford that so they were going to offer him a two year one at less wages. Such a shame that clubs can not act properly.

Im one of those loving german football at the moment, i was kind of hoping that we would spend some money on a couple of big name exotic players but be able to make up the rest of the squad from youth prospects like caulker, smith, carroll, livermore, townsend and falque.
 
That Europe 19.4bn euros diagram is excellent. Shows why players come to England, our wages are double any rival leagues.
 
The bottom half clubs are paying ridiculous amounts to not very good at all players.
 
nice,


12th Manchester United £3,921,987 (£75,423)
15th Arsenal £3,666,158 (£70,503)


wouldn't be happy if i was a gooner
 
Top 10 transfer flops (money wise):

Shaun Wright-Phillips (Chelsea): Bought for £21 million, sold for £8.5 million.

Alberto Aquilani (Liverpool): Bought for £20 million, sold for £7 million.

Robinho (Emirates Marketing Project): Bought for £32.5 million, sold for £18.2 million.

Hernan Crespo (Chelsea): Bought for £16.8 million, sold for nothing.

Michael Owen (Saudi Sportswashing Machine): Bought for £16.8 million, sold for nothing.

Owen Hargreaves (Man United): Bought for £17 million, sold for nothing.

Jo (Emirates Marketing Project): Bought for £18 million, sold for nothing.

Emmanuel Adebayor (Emirates Marketing Project): Bought for £25 million, sold for £5 million.

Dimitar Berbatov (Man United): Bought for £31 million, sold for £5 million.

Andrei Schevchenko (Chelsea): Bought for £30.8 million, sold for nothing.

http://www.thesun.co.uk/sol/homepage/sport/football/4967575/Top-10-loss-making-transfers.html

I see they haven't included Bentley and Torres could snag that top spot in the coming weeks.
 
Obviously fairly subjective when it comes to "current value" of the various squads, a good indication of just how well we've done in the transfer market though.

Cost per point is perhaps a bit more objective. Excellent results here too, all teams doing better than us have considerably less funds available.
 
Chelsea and City pay way over the odds, but not surprised to see the likes of Liverpool, Fulham, Stoke and Sunderland down there either, buying overrated, aging players.

Take away Andy Carroll and Liverpool will look better.
 
You must log in or register to reply here.
Back