The 29th Annual Football Review of Football Finance from Deloitte’s Sports Business Group also showed Europe’s top five leagues generated a record £15bn during the 2018/19 season, up nine per cent on the previous year.
But the report forecasts a sharp decline in Premier League clubs’ revenues in 2019/20 due to the impact of the COVID-19 pandemic, with some of the forecasted revenue for the period permanently lost.
“We expect the ongoing COVID-19 pandemic to cause significant revenue reduction and operating losses across European football in the current season’s financial results,” said Deloitte’s Dan Jones.
“Clubs are having to weather multiple financial impacts, including rebates or deferrals of commercial and broadcast incomes, as well as the loss of match day income and other event-related revenue.”
Manchester United last month estimated the coronavirus pandemic had already cost the club £23m after revealing a £3.3m loss in their third-quarter financial figures
With that said, Premier League clubs’ revenues are expected to hit a new record high in 2020/21, in part due to a deferral of some revenue from the 2019/20 financial year to 2020/21.
Jones added: “We forecast that the restart plans for the Premier League and a number of its peers will cause a rapid recovery in financial results as some 2019/20 broadcast revenues are pushed into the 2020/21 financial year, which may result in a bumper revenue year.
“Much remains uncertain, particularly around the timing and scale of the return of fans to stadiums and the impact on commercial and broadcast partners’ wider businesses.
“The football industry will be hopeful that a V-shaped recovery and a return to relative financial normality for the 2021/22 season is possible.”
The review showed Premier League clubs’ revenues broke the £5bn barrier for the first time, amounting to £5.2bn in total for 2018-19, an increase of seven per cent, driven primarily by growth in UEFA distributions to English clubs.
Liverpool played Tottenham in the Champions League final in 2019, while Arsenal and Chelsea contested the Europa League final.
Preston adviser Peter Ridsdale is ‘delighted’ the Championship season will resume later this month but admits the sport needs to address the disparity of financing in the football pyramid
In revenue terms, the Premier League was 73 per cent larger than Spain’s La Liga, which was its nearest competitor.
The combined aggregate operating profits of Premier League clubs slipped by 5 per cent to £824m in 2018/19 yet still represents the third-highest level of operating profitability recorded in the competition’s history.
Premier League clubs made combined pre-tax losses of £165m in 2018/19 as the charge for amortisation of previous player acquisitions increased and net profit on player transfers fell.
The 72 Football League clubs earned revenues of over £1bn for the first time ever.
Championship clubs generated record combined revenues of £785m in 2018/19, a 5 per cent increase from 2017/18.
League One clubs had their highest ever aggregate revenues (£191m) and League Two matched its previous revenue record (£91m).Pls SUBSCRIBE below to our Youtube channel and mailing list to get fresh updates on money making and inspiring videos and articles.