THE ANNUAL Deloitte review of football finance highlights the growth of Europe’s major leagues, but below the upper echelons, clubs are very reliant on owner funding and frequently have cash flow difficulties. The 2022-23 season saw a return to normality for most leagues and the European football market saw revenues grow by 16% to € 35.3 billion. This was partly attributable to an upswing in spectator enthusiasm post-covid, which saw improved crowds in England, France and Spain as well as consistent attendances in Germany, which still has the highest average (42,997) in Europe.
The big five leagues (Premier, Bundesliga, La Liga, Serie A and Ligue 1) generated revenues of € 19.6 billion, an increase of 14% on 2021-22. This amounts to over 50% of the overall European market. These leagues also made a combined operating profit of half a billion euros.
The Premier League continues to outstrip its peer group with revenues of £ 6.1 billion, a jump of 11%, the average revenue in the division is now in excess of £ 300 million. At the same time, wages were up by 10% to £ 4 billion. The Premier’s net debt rose from £ 2.7 billion to £ 3.1 billion, largely because of funding requirements for infrastructure projects. The Premier’s 20 clubs, in 2022-23, made a combined pre-tax loss of £ 685 million, representing an increase of 14%.
All the major leagues increased their revenue generation due to higher levels of matchday money, new and improved sponsorship deals and positive momentum around stadium utilisation. The Bundesliga and Serie A both saw their income rise by 22% to € 3.8 billion and € 2.9 billion respectively. France’s Ligue 1 enjoyed growth of 17% to € 2.4 billion, while La Liga’s revenues were up by 13% to € 3.5 billion.
Outside the Premier League, the Championship, which has for a long time spent more than it earns, saw income climb by 10% to € 749 million, a figure which clearly demonstrates how huge the gap between England’s top two tiers has become. For the first time in six years, the Championship’s wage bill did not consume in excess of 100% of revenues. In 2022-23, total wages for the Championship were £ 706 million, equating to 94% of income. There are some horror stories in the division and it is hard to determine if there is a trend to more pragmatic financial management. Certainly, second tier clubs in England remain heavy loss makers and registered operating losses of £ 316 million. Not a single club generated an operating profit before applying the benefits of player trading.
England’s League One and Two both report an increase in revenues, with average income of £ 9.8 million (+9%) and £ 5.4 million (+1%). These figures confirm the richer clubs are getting wealthier at a faster rate than their poorer cousins, which does not bode well for the much-treasured structure of 92 that has long been protected by the Football League and Football Association. At the very top, England’s clubs are cash cows and locked into the most lucrative aspects of sports commercialism, while at the bottom, the local “Uniteds” “Athletics” and “Towns” are dependent on the generosity of owners, local businesses, the occasional windfall from a player transfer and the goodwill of loyal supporters. But the imbalances are so vast now that the future of some of the smaller professional clubs has to be questioned.
GAME OF THE PEOPLE 