Premier League clubs' finances in the spotlight after falling operating profits | first division

Premier League clubs' operating profits took a significant hit in the 2022-23 season and pre-tax losses also rose sharply, according to new figures from Deloitte. However, the ecosystem behind them is thriving, with revenue exceeding £6 billion for the first time.

The latest annual review of football finances confirmed that England's top flight continues to dominate its rivals by some margin, sitting at the top of a European landscape that has fully recovered from the Covid-19 pandemic. But behind the headline figures were developments that will cause concern, with the report also showing that Championship clubs are still making huge losses despite a 10% rise in revenue.

Excluding player trading, operating profits in the Premier League fell 18% to £393m. This was partly attributed to inflation, while the increase in net debt was largely due to investment in infrastructure projects. The 14% increase in pre-tax losses, which amounted to £685m, was partly explained by a 10% increase in salary costs and the effects of depreciation.

It's a reminder that boom times cannot be taken for granted in a scene that nevertheless spins more money than ever. The league's aggregate revenue rose 11% to £6.1bn, with healthy increases recorded in matchday, commercial and broadcast revenue.

The transcontinental landscape has improved significantly. Overall, the European market grew by 16% to €35.3bn (£29.9bn). Much of that was due to the lifting of Covid-19 restrictions in countries such as Germany and Italy. Top-flight clubs in both countries saw a 22% increase in revenue compared to the 2021-22 season. The “big five” leagues, which also include those of France and Spain, recorded an aggregate operating profit of 500 million euros. It was the first profitable season overall since 2018-19.

Tim Bridge, senior partner in Deloitte's sports business group, welcomed the figures but warned that sport had to make crucial decisions on the matter. your future direction. “As plans and conversations continue between leagues in terms of greater regulation and investment, European football is at a turning point,” he said.

“Football is becoming an increasingly globally connected game, and this poses new challenges to maintaining competitive balance, strong governance and regulation. “Leaders across the industry must provide a united front to follow the principles of good governance to build a future for European football that can excite fans, players and partners across all leagues.”

Bridge also raised the alarm about the financial health of the Football League. Deloitte figures showed revenue increases of 10% in the Championship, 9% in League One and 1% in League Two, but the second-tier figure masks difficult questions about its sustainability. While its revenue exceeded wage costs for the first time since 2016-17, operating losses reached £316m and none of its 24 clubs generated operating profits outside of player trading.

““The Football League may have seen an increase in revenue in 2022-23, but clubs across the EFL are still struggling to manage cash needs,” he said. “Many clubs are supported by funding from their owners as they aim for promotion, but exiting the league on the wrong side exposes the club to instability. “This makes it essential to have a strategy for long-term stability, backed by appropriate support provided by governing bodies.”

Positive figures were recorded in women's football, with total revenue for Women's Super League clubs increasing by 50% to £48m. This is partly due to a “lionese uprising.” after England won Euro 2022.