English Premier League clubs will enjoy a revenue boost of almost 25 per cent next season thanks to a glut of lucrative new television deals, according to a report published on Thursday by financial analysts Deloitte.
A trio of television rights agreements estimated to be worth STG5.5 billion ($A9 billion) is due to kick in when the 2013-14 campaign gets under way, as the English top flight cashes in on its position as the world’s most popular soccer championship.
The new deals include a $US250 million ($A264 million) contract with US broadcaster NBC, in which 380 matches will be broadcast to American fans over three years.
England struggled in this season’s Champions League, failing to provide a single quarter-finalist for the first time since 1996, but Deloitte says the Premier League remains a formidable financial powerhouse.
“Premier League clubs’ revenue is estimated to have grown by … five percent to STG2.5 billion ($A4 billion) in 2012-13,” said Adam Bull from the company’s Sports Business Group.
“There will then be a significant increase of around STG600 million ($A976 million), almost 25 per cent, in 2013-14, with the first season of the Premier League’s new broadcast deals, taking the projected revenue of Premier League clubs above STG3 billion ($A4.9 billion) for the first time.”
However, despite record overall revenues of close to STG2.4 billion ($A3.9 billion), half the clubs in the Premier League are still making losses and Deloitte says they must brace themselves for the “culture shock” of the new TV windfall.
The report predicts that outlay on player wages will continue to grow, but says clubs should try to manage the rise carefully to leave funds available to be invested in stadium improvements, youth development and the reduction of losses.
The report says revenue generated by clubs in the Premier League reached a record STG2.36 billion ($A3.85 billion) last year, following a growth in commercial revenue of 15 per cent.
Although Premier League clubs generated the highest revenue of any league in Europe, Germany’s Bundesliga was the continent’s most profitable championship, with operating profits of STG154 million ($A250 million). The Premier League was second with profits of STG98 million ($A159 million).