Overview of European Football Revenue
The financial landscape of European football remains robust, with overall revenues for the 2023-24 season reaching an all-time high of €38 billion (approximately £32.2 billion or $43.6 billion). This impressive figure, highlighted in Deloitte’s latest Annual Review of Football Finance, marks an 8% growth in turnover across the continent, signaling ongoing prosperity in the sport.
Revenue Sources and League Performance
A significant portion of this revenue stems from the elite leagues collectively known as the “big five”—the Premier League, La Liga, Serie A, Bundesliga, and Ligue 1—which alone generated over €20 billion for the first time last season. The Premier League, home to 20 clubs, was a notable driver of this growth, contributing to a four percent increase in revenue compared to the previous season.
In contrast, Germany’s Bundesliga experienced a decline, recording a one percent drop in revenue to €3.8 billion, which allowed La Liga to strengthen its position as the second-highest grossing league in Europe, enjoying a six percent revenue increase.
Financial Predictions and Challenges
While Deloitte predicts that the overall financial health of European football will continue to improve, projecting revenue rises to €39.3 billion for the current season and further to €43.1 billion by 2025-26, there are looming challenges.
Amidst these positive projections, concerns arise regarding the stability of Ligue 1’s broadcasting rights and stagnant revenues anticipated for Serie A and the Bundesliga. These issues could prevent further substantial growth in the years to come, tightening the Premier League’s hold on its status as the dominant force in European football.
English Clubs Performance
The previous season was particularly favorable for English clubs, as they surpassed the £2 billion mark in commercial revenues for the first time, with matchday earnings also experiencing a significant rise to £909 million. Broadcast revenues, totaling £3.3 billion, are already higher than the total revenues of any other major European league, and this figure is forecasted to increase as a new broadcast deal takes effect in 2025-26, potentially pushing Premier League revenues to approximately £7 billion next season.
Operational Profitability and Club Management
Deloitte also examined operational profitability, revealing an operating profit of €600 million among clubs in the big five leagues for 2023-24. Interestingly, the ratio of wages to revenue has slightly decreased from 66% to 64%, indicating a more cautious approach to spending amidst rising costs.
Tim Bridge, lead partner for Deloitte’s Sports Business Group, pointed to the increasing pressure on clubs to enhance revenue streams while controlling expenses, emphasizing the need for management to maintain the historical essence and community value of football clubs.
Financial Challenges in Lower Leagues
The financial situation of teams in lower leagues provided a mixed narrative. Championship clubs collectively approached £1 billion in revenues, but soaring wage costs of £892 million meant an overwhelming 93% of their total income went towards salaries, with more than half of the clubs facing wage expenditures surpassing their revenues.
Meanwhile, League Two’s revenues rose to £160 million, although this notable increase was bolstered significantly by Wrexham’s ascent through the division.
Growth of Women’s Football
In a more uplifting trend, the Women’s Super League (WSL) exhibited remarkable growth, generating £65 million, a 34% increase from the previous season. For the first time, all 12 WSL teams reported earnings exceeding £1 million, with expectations that total WSL revenues could hit £100 million by the 2025-26 season, underscoring the increasing viability and popularity of women’s football.
