champs

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?

Bayern’s Vidal says “ugly” Atletico not deserved UCL finalists

MADRID, SPAIN - APRIL 27: Juanfran of Atletico Madrid and Arturo Vidal of Bayern Munich argue during the UEFA Champions League semi final first leg match between Club Atletico de Madrid and FC Bayern Muenchen at Vincente Calderon on April 27, 2016 in Madrid, Spain.  (Photo by Gonzalo Arroyo Moreno/Getty Images)
Getty Images
Leave a comment

Bayern Munich midfielder Arturo Vidal has declared “ugly” Atletico Madrid unworthy finalists in the UEFA Champions League.

Bayern was eliminated in the Champions League semifinal by Atleti on Tuesday, with Diego Simeone’s Spanish side advancing on away goals.

[ FOLLOW: All of PST’s UCL coverage ]

However, Vidal believed Bayern were the better team in the second leg, saying Atletico played “ugly football” to get through.

Today ugly football – Atletico – played against the best football in the world. The only time they saw the ball was for the goal.

They are going to be dreaming about us right up to the final. They did not have the ball, they took on the best team in the world, they took their chances and got to the final.

The best does not always win in football, like today. They are not deserved finalists.

Bayern Munich controlled more than 70-percent of possession and had 33 shots compared to Atletico’s nine, but those stats mean little as Antoine Griezmann’s away goal was enough to send Atleti to the final.

[ MORE: Former England striker Joe Cole headed to NASL’s Tampa Bay Rowdies ]

Atletico may not play the most attractive football, but after eliminating Barcelona and Bayern Munich in consecutive legs, it’s hard to argue anyone deserves this more than Simeone’s men.

Europa League preview: Liverpool, Shakhtar look to overcome Spanish foes

VILLARREAL, SPAIN - APRIL 28:  Cedric Bakambu of Villarreal is watched by the Liverpool defence during the UEFA Europa League semi final first leg match between Villarreal CF and Liverpool at Estadio El Madrigal on April 28, 2016 in Villarreal, Spain.  (Photo by David Ramos/Getty Images)
Getty Images
Leave a comment

The second leg of the Europa League semifinals kick off tomorrow, with two La Liga sides looking to make it an all-Spanish final.

[ MORE: Premier League Playback ]

Villarreal holds a 1-0 lead over Liverpool, while Sevilla scored two away goals in their 2-2 draw at Shakhtar Donetsk.

Liverpool vs. Villarreal – 3:05 p.m. ET
Villarreal won first leg 1-0

Adrian Lopez’s late winner in the first leg has given Villarreal a slight lead, while the Spanish side did well not to concede an away goal. However, Liverpool have overcome deficits at Anfield before, including their memorable 4-3 victory over Borussia Dortmund in the quarterfinals. Emre Can is back fit for the Reds, as manager Jurgen Klopp will hope his fellow German can help the team to a cup final in his first year in charge.

[ RELATED: Liverpool preparing for another big Thursday night at Anfield ]

Sevilla vs. Shakhtar Donetsk – 3:05 p.m. ET
First leg ended 2-2 draw 

Sevilla are looking to become the first team to win three consecutive Europa League titles as the two-time defending champions face off against Shakhtar Donetsk. Sevilla are in the driver’s seat after scoring two away goals in Ukraine, and will feel confident of advancing to the final with a great home record at the Ramon Sanchez Pizjuan Stadium.

Men in Blazers podcast: Celebrating Leicester’s title with Arlo White

meninblazers
Leave a comment

In the latest Men in Blazers podcast, Rog and Davo celebrate Leicester City’s improbable Premier League title with Leicester’s own Arlo White.

All of the MiB content — pods, videos and stories can be seen here, but to really stay in touch, follow, subscribe, click here:

Subscribe to the podcast OR to update your iTunes subscriptions ]

Click here for the RSS feed ]

European police say Russian mafia infiltrating soccer clubs

LISBON, PORTUGAL - NOVEMBER 04:  Sporting Lisbon fans celebrate after their team score a goal during the Portuguese Liga match between Sporting Lisbon and Uniao Leiria at the Alvalade XXI Stadium on November 4, 2005 in Lisbon, Portugal.  (Photo by Dean Mouhtaropoulos/Getty Images)
Getty Images
Leave a comment

LISBON, Portugal (AP) Portuguese and European police say they have broken up a cell of an important Russian mafia group that allegedly laundered money through European football clubs.

Europol, the European Union’s law enforcement agency, said in a statement Wednesday the group identified EU football clubs in financial distress and infiltrated them with benefactors who brought much-needed cash.

[ MORE: Man City bounced from UCL ]

Once they were in control, the mobsters allegedly laundered millions of euros (dollars) through player transfers, TV rights deals and betting.

Portuguese and European police on Tuesday raided third-division Portuguese club Uniao de Leiria and arrested three key members of the Russian gang. Three other Portuguese clubs’ premises were searched.

Europol said the operation helped identify serious crimes in Austria, Germany, and the United Kingdom, though it gave no details.