Premier league soccer clubs announce record $700 million in profits

Ali Al Habsi of Wigan Athletic fouls to save a goal during the Barclays Premier League match between Norwich City as well as Wigan Athletic at Carrow Road on March 11, 2012 in Norwich, England.

Jamie McDonald | Getty Images Sport | Getty Images

Ali Al Habsi of Wigan Athletic fouls to save a goal during the Barclays Premier League match between Norwich City as well as Wigan Athletic at Carrow Road on March 11, 2012 in Norwich, England.

According to data compiled by Deloitte’s Sports Business Group, they generated a combined operating profit of £1.0 billion ($1.4 billion) within the 2016/17 season.

the idea showed clubs collectively reported a pre-tax profit of £0.5 billion, a record for the league, with wages increasing by 9 percent to £2.5 billion.

in which collective pre-tax profit of was almost three times the previous record in 2013/14.

Deloitte’s Dan Jones, commented: “As predicted last year, the Premier League’s three-year broadcast deals which came into effect within the 2016/17 season helped drive revenue to record levels.”

“Despite wages increasing by 9 percent, This specific increase can be nowhere near the level of revenue growth noted. This specific relative restraint by Premier League clubs reflects both the extent of their financial advantage over various other leagues as well as the impact of domestic as well as European cost control measures.”

Furthermore, the effort shown by clubs to control their wages, has translated broadcast revenue success into healthy operating as well as pre-tax profits.

Every top-flight club made an operating profit as well as 18 of 20 recorded a pre-tax profit. The collective revenue to wage ratio can be down by 63 percent to 55 percent within the 2016/17 season, the lowest since the 1997/98 season.

The analysis also reveals in which Premier League clubs have collectively made a pre-tax profit in three out of the last four years as well as, despite clubs posting a collective pre-tax loss at the end of the 2016 season (due to a smaller number of one-off exceptional costs), the idea can be likely in which Premier League profits are here to stay.

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