• Monday, July 15, 2024
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BusinessDay

European football revenue soars to €35.3bn

European-Football (1)

The European football market rebounded post-COVID with a notable 16% surge in revenues to €35.3 billion during the 2022/23 season, according to Deloitte’s Annual Review of Football Finance.

The latest Deloitte Annual Review of Football Finance highlights the robust financial health of Europe’s ‘big five’ leagues, which collectively generated €19.6 billion in revenue in the 2022/23 season, marking a significant €2.3 billion (14%) increase from the previous year. For the first time since 2018/19, these leagues reported an aggregate operating profit of €500 million.

Leading the charge, Premier League clubs saw their revenue surge by 11% to exceed £6 billion for the first time, with average club revenue in the English top-flight surpassing £300 million. The league’s total revenue reached £5.5 billion in the preceding season, driven by a notable 14% rise in matchday revenue to £867 million, supported by record-breaking average league attendance.

Commercial revenue for the Premier League increased by £221 million year-on-year to £2 billion, while broadcast revenue also grew by 9% to £3.2 billion. This revenue growth contributed to a 10% increase in wage costs, surpassing £4 billion for the first time.

Despite lower annual wage growth compared to revenue (£603 million), rising wage costs and amortisation led to a 14% rise in pre-tax losses to £685 million. Excluding player trading, operating profits for Premier League clubs fell by 18% to £393 million, amid rising operating expenses of approximately £1.6 billion, partly driven by inflation.

Across the Bundesliga and Serie A, the return of fans to stadiums fueled the highest proportional revenue growth among the major leagues, with each experiencing a 22% increase compared to the previous season.

Bundesliga clubs generated €3.8 billion in revenue (up from €3.1 billion), while LaLiga clubs achieved €3.5 billion in aggregate revenue. Serie A reported a record revenue of €2.9 billion, marking a 22% rise from the previous season.

Tim Bridge, lead partner in Deloitte’s Sports Business Group, commented, “The 2022 FIFA World Cup, easing COVID-19 restrictions, and heightened fan engagement have driven robust growth in the European football market in 2022/23.

As discussions on regulation and investment progress across leagues, European football faces pivotal decisions. Maintaining competitive balance, robust governance, and unified regulation are crucial as football continues to globalise, ensuring a future that excites fans, players, and partners alike.”