Premier League’s wage bill surpasses £4bn for the first time

According to the 33rd Annual Review of Football Finance published by the Deloitte Sports Business Group, the ‘big five’ European leagues in the UK, Germany, France, Spain and Italy generated total revenue of €19.6bn, up €2.3bn (14%) on the previous season. Clubs in the Premier League, Bundesliga, Ligue 1, LaLiga and Serie A also reported an aggregate operating profit (€0.5bn) for the first time since the 2018-19 season.

It is worth noting that as the report covers the 2022-23 season, it was the first time events were unaffected by COVID-19 restrictions. That season also saw the hosting of the winter 2022 FIFA World Cup in Qatar.

The Premier League once again dominated financially across Europe during the 2022-23 season, with clubs registering an aggregate revenue of £6.1bn – an 11% increase on the previous year. It is the first time England’s top flight has surpassed the £6bn revenue mark, driven by matchday revenue, a new record average attendance and a year-on-year increase in commercial and broadcast revenue.

Total wage costs in the Premier League increased by 10%, surpassing £4bn for the first time. However, despite annual growth in wages (£377m) being lower than growth in revenue (£603m), rising wage costs and amortisation adversely impacted pre-tax losses in the Premier League, which increased by 14% to £685m.

Premier League clubs’ operating profits, excluding player trading, fell 18% to £393m, as other operating expenses increased to roughly £1.6bn, driven in part by inflation. Net debt of clubs rose from £2.7bn to £3.1bn, largely influenced by funding for infrastructure projects.

Meanwhile, German Bundesliga clubs generated a total revenue of €3.8bn during the 2022-23 season, compared to €3.1bn in 2021-22. LaLiga broke records, with the clubs achieving aggregate revenues of €3.5bn, while Serie A club revenue totalled €2.9bn, also a record for the Italian league.

“The 2022 FIFA World Cup, the lifting of final COVID-19 restrictions, and the fervour of fans engaging with football has led to strong growth in the European football market in 2022-23,” commented Tim Bridge, lead partner in Deloitte’s Sports Business Group.

“As plans and conversations continue across leagues in terms of further regulation and investment, European football is sitting at an inflection point. Football is growing into an ever more globally connected game, and this brings new challenges to maintaining competitive balance, strong governance and regulation. Leaders across the industry must provide a united front in following good governance principles to build a future for European football that fans, players, and partners across leagues can be excited for.”

Success of the Lionesses

England Women’s Euro 2022 triumph inspired a 50% rise in revenue during the 2022-23 Women’s Super League (WSL) season. Clubs generated a £48m in aggregate revenue, a major increase on the £32m posted during the 2021-22 season.

Deloitte’s report also demonstrated that WSL clubs’ revenue had more than doubled over two seasons, with aggregate club revenue standing at £20m during 2020-21. Further growth is predicted for the English top flight of women’s football, with revenue expected to reach £52m in the 2023-24 season, and £68m in 2024-25.

“Driving a loyal fanbase, habitual viewing, and distinct commercial partnerships was a clear priority for WSL clubs in the 2022-23 season and the soaring revenue growth achieved demonstrates the strides that have been made,” said Jenny Haskel, knowledge and insight lead in the Deloitte Sports Business Group.

“However, we’re still in the foothills of growth in the women’s game. As NewCo concentrates on growing the popularity, standards, and visibility of the women’s game in England, collaboration with clubs and other stakeholders will be an important element to continuing the efforts to attract the attention of commercial partners, investors, and crucially, fans.”

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