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Cash bonanza: Premier League clubs earn £500m in profits

by LLB Reporter
20th Apr 18 8:52 am

Combined revenues of clubs increased by nearly £1bn

Premier League clubs have posted record profits last season owing to strong broadcast revenues and Financial Fair Play rules keeping wage inflation under control, according to data released by Deloitte today.

The combined revenues of Premier League clubs increased by nearly £1bn ($1.4bn) to a record £4.5bn in the 2016/17 season.

The collective pre-tax profit of £0.5bn was almost three times the previous record of £0.2bn in 2013/14.

Dan Jones, the head of Deloitte’s Sports Business Group, said the increase in revenue was a result of last season being the first of the current three-year domestic deal with BT and Sky, which is worth more than £5.1bn.

Jones said the increase in wages was “nowhere near the level of revenue growth” and this “reflects both the extent of [the Premier League’s] financial advantage over other leagues and the impact of domestic and European cost control measures”.

“Despite the lack of growth in domestic broadcast deals announced to date, we still expect to see overall revenue growth in the coming seasons, and if this is complemented with prudent cost control, we expect that pre-tax profits will be achieved for the foreseeable future,” added Jones.

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