Premier League clubs record first loss since 2012-13 despite revenues hitting £3.6bn
Soccer clubs in England’s top-tier Premier League posted record revenues of £3.6 billion ($4.6 billion) in the 2015-16 season, but still posted overall losses of £110 million, according to new analysis from Deloitte, the business advisory firm.
The 20 elite clubs saw turnover increase by £200 million last season, with local rivals Manchester United and Manchester City accounting for £160 million of the growth.
Earlier this year, Deloitte revealed that Manchester United had overtaken Spanish giants Barcelona and Real Madrid to become the highest revenue generating club in the world, with turnover of €689 million ($735 million) for the 2015-16 season.
A rise in player wages, operating costs and one-off charges has been cited as the reason for the first pre-tax loss by Premier League clubs since the 2012-13 season.
Wage costs climbed from £2 billion to £2.3 billion while other operating costs increased by £100 million to £900 million.
Of the 20 top-flight teams, 18 clubs posted an operating profit and 12 made a pre-tax profit.
Dan Jones, head of the Sports Business Group at Deloitte, commented: "The 2015-16 season saw Premier League clubs grow revenues by almost 10 per cent ... with the two Manchester clubs alone responsible for more than 50 per cent of the increase.
"Increased distributions to clubs competing in Europe, under the new Uefa broadcast rights cycle - notably Manchester City, who reached the semi-finals of the Uefa Champions League - also contributed to Premier League clubs' revenue growth."
With lucrative new broadcast rights deals coming into effect this season, it is predicted that Premier League clubs will generate £4.3 billion in turnover in 2016-17.
The Premier League is on track to garner a mammoth £8 billion from media rights sales for the three-year cycle that started this season, including £5.14 billion from UK pay-TV operators Sky and BT Sport.