Revenue made by English football clubs tops $4.64 billion as the Premier League contributes $3.71 billion

1 Comment

“She’s got an indiscreet voice,” I remarked.

“It’s full of -” I hesitated.

“Her voice is full of money,” he said suddenly.

When I think of the Premier League the above quote from ‘The Great Gatsby’ frequently pops into my head.

The league, while incredibly compelling for so many reasons, is ultimately all about money. Every time I find myself getting wound up about the game I inevitably come back to that earth-shattering realization – it’s not a game, it’s just a business.

And man, business is BOOMING.

Today it was revealed that the combined annual revenue of the 92 clubs in England’s top four divisions has eclipsed £3 billion ($4.64b) – that’s ‘b’, as is business – for the first time ever. The numbers come virtue of Deloitte’s most recent finance review from 2011-12 that shows revenue from the Premier League’s 20 clubs increased 4% to almost £2.4 billion ($3.71b), capping yet another astounding year of commercial growth.

By means of comparison, these number dwarf those of the Bundesliga (£1.58 billion ($2.44b)), La Liga (£1.4 billion ($2.16b)) and Serie A (£1.3 billion ($2.01b)). Signs did, however, indicate that the Bundesliga is fast catching up where operating profits were £161 million ($248.84m) while in the Premier League they were £98 million ($151.47m), up from £25 million ($38.64m).

Adding further intrigue to the economic efficiency of German football (or, the inefficiency of the Premier League) is that the revenue-to-wages ratio average in the Bundesliga fell to 51%, while the Premier League’s ratio hovered at 70%. Of course, in a league where clubs like Manchester City are permitted to run riot spending more than £200 million ($309.12m) on players’ salaries, this can hardly come as a shock.

Dan Jones, a senior partner at Deloitte, spoke of the Premier League’s huge boom in revenue:

The £3bn is a big stat. Likewise is the growth in the Championship itself – sometimes the Championship gets overshadowed by the Premier League. The reality is they’re both great successes. It’s just the Premier League is the bigger success.

The Championship performance is extremely strong again. It’s the biggest second-tier league in Europe by a street. No one else has a second-tier league that comes anywhere close. People are pushing very hard to get in the Premier League. What is imperative is that clubs do that in a way that is sustainable. The Football League is bringing in its financial fair play rules precisely to address that.

The Deloitte report does not cover the most recent season. With the significantly larger amount of TV broadcast revenue (£5 billion spread over three seasons) that will be coming the way of Premier League clubs beginning in 2013-14, Jones believes that while there is some uncertainty as to how team’s will react, player wages could begin to skyrocket.

The big test will be what happens to the new TV money, how much of that finds its way into the wage bill. It will also be interesting to see how the new financial regulations will affect clubs’ behavior.

Once the new TV deal kicks in I think you’ll find the total spent on players will be up at a record level. There’s no intrinsic problem with that but it’s all about spending being balanced and not being excessive to the point that it endangers the club.

How seriously the Premier League is taking phrases like “spending being balanced” and “not being excessive” will be key to the league’s continued development. While higher player wages should make England an even more desirable destination for the world’s most sought-after footballers, league officials must be concerned over whether such staggering growth is sustainable.

Regardless, it’s remarkable how far England has come since the installation of the Premier League in 1992.

What do you think?

Is this all good news or is the Premier League’s voice a bit too full of money?

Top Storylines for Premier League Week 6

Getty Images
Leave a comment

After a week of League Cup action domestically, the Premier League returns this weekend with a myriad of interesting matchups and storylines.

Let’s take a look at some of this week’s top story’s to follow:


Can Manchester City continue its torrid form?

Manchester City has finally found its groove under manager Pep Guardiola.

[ VIDEO: Premier League highlights ]

The club has won five successive games, the last three coming on the road while scoring a combined 19 goals. Sergio Aguero and Gabriel Jesus are a terrific 1-2 punch while David Silva and Kevin De Bruyne have been stars in midfield, with De Bruyne pulling the strings for Man City all season.

There’s every likelihood that Man City will continue its impressive run on Saturday. The club hosts floundering Crystal Palace, which is still adjusting to new manager Roy Hodgson.

(more…)

On This Day: The Battle of Old Trafford

Getty Images
Leave a comment

Fourteen years ago today, Arsenal headed north to Manchester for a famous matchup with Manchester United.

Taking the field at Old Trafford, Arsenal were unbeaten to start the season, having won its first four Premier League matches before drawing a week prior at home against Portsmouth. Manchester United meanwhile had four wins and one loss in that span.

[ MORE: Watch full PL match replays ]

By way of Arsenal’s FA Cup title and Man United’s Premier League title the year before, the two teams met for the annual Community Shield a month earlier, and the game descended into a physical battle. Five yellow cards were shown, Arsenal substitute Francis Jeffers was shown a red card and defender Sol Campbell was later banned for kicking at an opponent, and Man United – backed by a young Tim Howard in goal – won 4-3 on penalty kicks after the score was tied at 1-1 after extra time.

With numerous physical encounters over the years, the September 21 encounter was shaping up to be another monumental showdown, and in terms of physicality, it didn’t disappoint.

Each team were shown four yellow cards and there was a combined 31 fouls. The match took a turn when Patrick Vieira was shown a second yellow card and subsequent red card for kicking out at Man United’s Ruud Van Nistelrooy after Van Nistelrooy had fouled Vieira going for a header. The decision set off a scrum in the middle of the field.

Despite being down to ten men, Arsenal held on until the final minutes, when Martin Keown was whistled for a foul in the box on Diego Forlan, giving Man United a penalty kick. But whether it was karma or lady luck, Van Nistelrooy’s penalty clanged off the crossbar and away to safety. Arsenal held on for a goalless draw, which helped boost the team’s belief in itself.

The Gunners went on to finish the 2013-2014 season undefeated, the only team to finish a Premier League season without a defeat. Man United wound up taking the FA Cup crown, settling for third place in the Premier League.

Watch some highlights from the match below.

Former Sunderland forward Scocco scores five goals for River Plate

Getty Images
Leave a comment

Veteran forward Ignacio “Nacho” Scocco is quickly endearing himself to the River Plate faithful.

Nearly three months since joining River, Scocco scored an incredible five goals in the second leg of his team’s Copa Libertadores quarterfinal matchup with Bolivian side Jorge Wilstermann. Scocco scored a first half hat-trick and added two more in the second half as River turned around a 3-0 deficit heading into the second leg.

Scocco had a mostly frustrating spell in 2014 ahead of the World Cup with Sunderland, joining the club as they staved off relegation by one point. Scocco failed to score for Sunderland in eight appearances, all off the bench.

However, since then, he returned to his native Argentina and starred for his hometown club Newell’s Old Boys before moving this summer to River as a replacement for Sebastián Driussi, who completed a transfer to Zenit St. Petersburg.

Here’s a look at all of Scocco’s goals Thursday evening.

Tammy Abraham denies switching national teams

Getty Images
Leave a comment

Fans of the England National Team may still have a chance to see Tammy Abraham don the Three Lions crest one day.

Abraham refuted reports from earlier Thursday that he was in the process of switching his national team to Nigeria from England. The 19-year-old Swansea City forward on-loan from Chelsea has played as high as the England Under-21 Men’s National Team but because of his Nigerian father, he’s eligible for the African nation.

[ FOLLOW: All of PST’s PL coverage ]

Abraham confirmed that he had met with Nigeria Football Federation chief Amaju Pinnick after Swansea’s last game, but denied that he was looking to play for the Super Eagles.

“I have informed The FA that I remain available for selection for England,” Abraham said, via the BBC. “Contrary to reports in the media I would like to clarify that I have not agreed to switch my national team allegiance. I can confirm I met the President of the NFF after our last game against Tottenham at Wembley on Saturday given he is a friend of my father. However, any suggestion that I have made a decision to change my international representation is incorrect and wide of the mark.”

Earlier in the day, reports emerged that Pinnick said the process was underway for Abraham to switch his international allegiance.

Abraham’s apparently decision to remain with the England set-up is good news for his club Swansea City, who will get to keep him closer to Wales on a regular basis, but Abraham may be missing a chance to play senior national team soccer at a young age.