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Premier League 'dominates' European football finance

29/05/2008

The English Premier League makes up a quarter of the total revenue among the major divisions in European football, Deloitte's annual review of football finance has revealed.

The report underlines the dominance of the Premier League in relation to nations such as Italy, Spain, Germany, France, Portugal and the Netherlands.

It was found that the Premier League now generates more revenue than any other league across each of the three primary revenue categories - matchday, broadcast and commercial.

This in turn has enabled teams within the league to recruit and retain the best players, which attracts fans and fills stadia resulting in on-pitch success at home and abroad, Deloitte adds.

The top 20 clubs in England reported revenues of over £1.5 billion for the 2006/07 season.

And Deloitte estimates this will have increased to £1.9 billion when figures up until the end of the 2007/08 season are taken into account.

"Domestic popularity, investment in facilities and global reach continue to drive revenue growth for Premier League clubs," said Dan Jones, partner in the sports business group at Deloitte.

Underpinning the growth of the commercial viability of the game in England is the finding that clubs are spending more than ever before on their wage bills.

The total amount spent increased by 13 per cent, two per cent more than the rate of increase in revenue (11 per cent) as clubs spent ahead of the expected increase in TV revenue from the new broadcasting deal agreed last year.

"So far there is limited evidence that the clubs are translating this revenue boost into improved profits," Mr Jones continued.

"The record amounts of spending on wages and player transfers were such that operating profitability declined in 2006/07.

"With increased television revenues, profitability will have improved in 2007/08, probably to record levels.

"However, the exact bottom line result achieved will depend on the degree of spending restraint displayed by clubs."

Deloitte also found that as many as two in five of all clubs currently in the top two tiers of English football had been the subject of an ownership change in the last couple of years, highlighting the growing global appeal of the sport to investors.