EPL's Record High Revenues Offset By Climbing Wages, Debts
The Deloitte Annual Review of Football Finance indicates that the English Premier League (EPL) for the '06-07 season earned record revenues of $2.97B (all figures U.S.), while England's top four divisions have pulled in an income of over $3.95B for the first time, according to Kevin Eason of the LONDON TIMES. But Deloitte Sports Business Group Partner Dan Jones "warns that these record earnings have been accompanied by rampant spending on players' wages, with double-digit inflation that would blow a hole in the finances of any other form of business." Only eight EPL teams for the '06-07 season recorded an operating profit, and total debt for the league's 20 teams was up 19% to more than $4.75B. EPL clubs Manchester United and Chelsea account for $2.47B of the league's total debt. Jones said that English soccer "could become a profit-free zone." EPL owners "allow their clubs to spend huge amounts on transfers and wages." As a result, English soccer has developed a "wall of debt," and EPL clubs in the '06-07 season spent the $5.4B TV broadcasting revenues a "year before these payments kick in" (LONDON TIMES, 5/29). Deloitte's data shows that EPL revenues for '06-07 were up 11% from the '05-06 season, but wages grew 13% to $2.77B, "more than twice the figure" in Spain's La Liga, Germany's Bundesliga or Italy's Serie A (London INDEPENDENT, 5/29). EPL team salaries for the '06-07 season rose 13% to $1.92B and will have exceeded $1.98B for the '07-08 season (Manchester GUARDIAN, 5/29). See Deloitte's financial breakdown of each EPL club (London TELEGRAPH, 5/29).
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