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Deloitte Football Report

Some people may find this interesting, some may not.


    edited May 2008
    Interesting points for me:

    - Revenue growth was focussed amongst the ‘big four’ clubs. On average, ‘big four’ club revenues increased by 24% (£34m) to £178m, while the rest of the Premier league clubs had average revenues of £50m in 2006/07.

    - Increases in both wages and other operating costs have led to a fall in operating profits for the Premier League clubs for the second consecutive year after five years of growth. Operating losses amongst Championship clubs increased for the third successive year, but the gap in operating performance between the average Premier League and Championship club decreased from £9.1m to £7.9m.

    - In terms of total attendances in 2007/08, the Championship is now the fourth biggest football league in the world eclipsing Serie A in Italy and Ligue 1 in France and pushing La Liga in Spain very close for third place.

    - Based on the available information, the Championship clubs had aggregate net debt at the end of the 2006/07 season of £289m. Ten Championship clubs had filed accounts showing net debt at the end of the 2006/07 season in excess of £10m. In general, a Championship club can only hope to significantly reduce its net debt in the short/medium term via either promotion to the Premier League or an injection of equity funding from its owner.

    - For the first time since our analysis began, the English PremierLeague has been knocked off the top spot in terms of operating profits amongst the ‘big five’ European leagues. With an impressive €168m (206%) increase in operating profits to €250m in 2006/07, the German Bundesliga generated €109m more in
    operating profits than England’s Premier League (€141m), its closest rival. Bundesliga clubs’ operating margin was 18%, three times as high as the 6% for Premier League clubs.
  • Very interesting stats.

    Some very interesting reading there, and when broken down really shows the unhealthy situation of the big 4 English clubs, not just driving English football, but European football now.

    Revenues rose 11% in the Prem, yet those of the big 4 rose on average 24%. For the other 88 clubs, it was almost static. Championship revenues rose just 3%, despite having well supporterd Sunderland and Birmingham in it.

    Average turnover for the big 4 was £178m. For the rest of the prem it averaged £50m (that includes Spurs who are well above that etc). So the average Premiership club is having to operate and compete in the same league as the top 4 on just 28% of their revenues.

    And what about us ? Well we're having to operate on somewhere between 10-15% that of the top 4, and around 40% of the average prem club.

    And these figures are BEFORE the big TV deal kicked in last year, which will take the average premiership club much further away from the rest of the Football league, and will see us operating on less than 30% of the revenues of, say Fulham.

    Its only when you see the figures you see how great the dispreportion has become.

    Very sad, and very worrying.
  • Big Red Evil said:

    Our wages only went up 100k from 05/06 despite Bents/Young (I think he got one) new contracts and the signings of Faye/Traore etc.
  • Somerton said:

    Yes not a big increase, but in the Guardian there is even more detail and are wage to turn over ratio for 2006/2007 was near enough 95% . This explains the butchery that went on when relegated, the club was running at unsustainable levels of player wages.
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