Don't have the whole report, but some things in the highlights make a very interesting read:
• Despite the challenging global economic environment, the European football market grew to €15.7 billion in 2008/09. The ‘big five’ leagues’ revenues (England’s Premier League, France’s Ligue 1, Germany’s Bundesliga, Italy’s Serie A and Spain’s La Liga) grew by 3% to €7.9 billion.
• In their local currencies, the ‘big five’ leagues all managed to increase their total revenues in 2008/09. The Bundesliga, Serie A and Ligue 1 achieved growth across all three key revenue streams.
• The Premier League increased its revenue by £49m (3%), however, due to sterling’s deterioration against the euro, revenues fell by €115m to €2,326m in 2008/09. Despite this, the gap to the second highest revenue generating league, the Bundesliga (having moved ahead of La Liga), was still €751m.
• The Bundesliga’s revenue growth of €137m (10%) to €1,575m, the highest absolute and relative growth of any of the ‘big five’ leagues, was driven by an impressive €99m (16%) increase in commercial revenues.
• La Liga growth of €63m (4%) to €1,501m was driven by combined growth of €93m by Real Madrid and Barcelona, the world’s top two revenue generating
clubs. The remaining 18 La Liga clubs recorded an aggregate fall in revenue of €30m.
• Serie A’s revenues increased by €73m (5%) to €1,494m leaving it in fourth place of the ‘big five’ leagues ahead of Ligue 1 whose clubs revenues exceeded €1 billion for the first time, totalling €1,048m (up 6%).
• The ‘big five’ leagues’ wages increased by €305m (6%) to exceed €5 billion for the first time in 2008/09. Serie A clubs’ wages grew by €121m (12%), with wage inflation of 11% experienced by the Premier League (up £132m) and the Bundesliga (up €78m). La Liga and Ligue 1 had more modest increases of 4% and 3% respectively.
• The Premier League and the Bundesliga were the only leagues to achieve operating profits in 2008/09, with the Bundesliga (increasing to €172m) overtaking the Premier League (falling to €93m) (£79m).
• European club football is increasingly polarised; Europe’s top 20 revenue generating clubs earned over €3.9 billion in 2008/09, 25% of the entire European football market. Amongst the ‘big five’ leagues La Liga is the most unequal with a revenue spread of 25 times between the biggest and smallest club. The Premier League and Ligue 1 are the most even with an equivalent spread of six times. The scheduled return to collective selling of broadcasting rights for Italian clubs in 2010/11 should reduce the revenue imbalance in Serie A, while the Spanish LFP is reportedly looking at the feasibility of such a change.
• Premier League operating profits fell by more than half to £79m, their lowest level since 1999/2000, primarily owing to wage inflation (£132m) being greater than the £49m increase in revenue. Profitability particularly weakened at a number of clubs outside of the ‘big four’ who invested heavily in players either to strive for European qualification or to protect their Premier League status.
• The polarisation of operating profits in the Premier League is stark. Together Arsenal, Liverpool and Manchester United and the newly promoted clubs collectively generated operating profits of £196m. By contrast, the other 14 clubs recorded combined operating losses of £117m.
• Total wage costs across the 92 top professional football clubs in England exceeded £1.8 billion in 2008/09 following a £191m (12%) increase. Premier League clubs were the largest contributor to this growth as their total wages increased by £132m (11%) to over £1.3 billion.
• The wage bills of Premier League clubs have now recorded double digit percentage growth for three years running and total wages have grown by in excess of 55% (£474m) in that period. With wages growth outpacing revenue growth in 2008/09, the Premier League’s wages/revenue ratio increased to 67% – a record high. This key performance indicator increased in all four divisions in 2008/09.
• The most rapid inflation in Premier League wages has been in the group of 13 clubs outside of the ‘big four’ and the three newly promoted clubs as the pressure intensifies for them to secure European qualification or to avoid relegation.
• However, whilst there continues to be a strong correlation between wage costs and league finishing position at the very top (top four) and the bottom (relegation places), there is an extremely weak link for the clubs in the middle. This again highlights that money spent on wages is certainly no guarantee of success for the majority of Premier League clubs, and suggests many clubs are getting questionable value for investment in player wages.
• Overall, The Football League is now spending 86% of its revenues on total wages, with only an £82m surplus of revenue over wages to manage the rest of the business, fund operating costs, and consider transfer budgets, which is a huge, and ultimately unsustainable, financial challenge.
• Agents’ fees increased by 4% to £80m in 2008/09, such that these payments represented 36% of the total net transfer spending (up from 28% in 2007/08). Five clubs were responsible for more than 50% of the total amount paid to agents.
source:
http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Industries/Sports%20Business%20Group/UK_SBG_ARFF2010_Highlights.pdfThink it's pretty clear on how unhealthy the current financial situation of most clubs in the EPL is, especially when it comes to wages. At the same time it shows how healthy the Bundesliga seems to be.
