Premier League clubs to get 25pc boost in revenue from new TV deals

New rights deals to pump extra HK$65 billion into world's most popular championship

PUBLISHED : Friday, 07 June, 2013, 12:00am
UPDATED : Friday, 07 June, 2013, 12:05pm


English Premier League clubs will enjoy a revenue boost of almost 25 per cent next season thanks to a glut of lucrative new television deals, according to a report published yesterday by financial analysts Deloitte.

A trio of television rights agreements estimated to be worth £5.5 billion (HK$65.5 billion) are due to kick in when the 2013-14 campaign gets under way, as the English top flight cashes in on its position as the world's most popular soccer championship.

The deals include a US$250 million contract with US broadcaster NBC, which will see 380 matches broadcast to American fans over a period of three years.

England struggled in this season's Champions League, failing to provide a single quarter-finalist for the first time since 1996, but Deloitte says the Premier League remains a formidable financial powerhouse.

"Premier League clubs' revenue is estimated to have grown by ... 5 per cent to £2.5 billion in 2012-13," said Adam Bull from the company's Sports Business Group.

"There will then be a significant increase of around £600 million, almost 25 per cent, in 2013-14, with the first season of the Premier League's new broadcast deals, taking the projected revenue of Premier League clubs above £3 billion for the first time."

However, despite record overall revenue of close to £2.4 billion, half the clubs in the Premier League are still making losses and Deloitte says they must brace themselves for the "culture shock" of the new TV windfall.

The report predicts that outlays on player wages will continue to grow, but says clubs should try to manage the rise carefully to leave funds available to be invested in stadium improvements, youth development and the reduction of losses.

"Achieving a more sustainable balance between their costs and revenue and thereby generating more profits provides opportunities or, some might say, a culture shock for clubs," says the report.

"Increased profitability will allow greater longer-term investment in stadiums and training infrastructure, youth development and community programmes. It also provides funds for the acquisition of talent, as clubs in the top flight can use the self-generated funds to transfer in and retain top playing talent to strive to improve the quality of football on show."

The report says revenue generated by Premier League clubs reached a record £2.36 billion last year, after growth in commercial revenue of 15 per cent.

Although the clubs generated the highest revenue of any league in Europe, Germany's Bundesliga was the continent's most profitable championship, with operating profits of £154 million.