TaxPersonal TaxPremier League is top earner

Premier League is top earner

English premiership is richest in world and a magnet for European talent. Lawrie Holmes reports

The English Premier League has become the richest football league inlent. the world, thanks to a cash bonanza from satellite television, according to Deloitte & Touche’s annual review of football finance.

As speculation mounted this week over plans for a European super-league, the English premiership emerged as European financial champions, generating revenues of #464m in 1996/1997, beating Italy’s Serie A into second place, with #377m and leaving the Spanish and French leagues trailing with #232m and #209m respectively.

Premiership income grew faster than any of its European rivals, with clubs generating average profits of #4.3m. The top five finishers last season – Manchester United, Newcastle, Arsenal, Liverpool and Aston Villa – collectively generated turnover greater than that of all 72 clubs in the football league.

The report showed overall English football income leapt 31% for the 1996/1997 season, including #85m to the premiership from BSkyB.

Overall, English football’s revenues totalled #675.5m in 1996/1997 (up from #517.2m in 1995/1996). The game made a pre-tax loss of #42.6m, an improvement on the #98.2m pre-tax loss in the previous year.

The report said most of the gains by premiership clubs had been spent on overseas players. Over #100m flowed from the English game to overseas clubs in the season, while only #14.5m went from the Premier League to Football league clubs. Italian Serie A clubs each benefited on average by #3.8m from transfer activity.

Deloitte & Touche football industry team head Gerry Boon said: ‘The bad news is that costs spiralled too, particularly players’ wages.’ He added that the lower divisions were not seeing any of the benefit: ‘Smaller clubs used to rely on transfer income to fund their losses, but the larger clubs are now looking overseas to buy new talent.’

Boon said the financial divide between the Premier and Football Leagues was turning from gap to abyss. ‘Worse still, the desire to bridge that abyss is tempting many clubs to live beyond their means,’ he added.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

2d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter