Premier League clubs’ combined revenues reached a record £4.8bn last season.
The record figure is up from £4.6bn in 2016/17, according to analysis from Deloitte’s Sports Business Group.
However, despite the record revenues, a massive increase in wages meant that operating profits actually fell compared to the previous year.
Wage costs went up by 15% year-on-year to £2.9bn.
This led to operating profits dropping from £1bn in 2016/17 to £0.9bn in 2017/18.
Matchday revenue for top flight clubs increased by 8% year-on-year, while commercial revenues increased by 12%.
Clubs also benefited from a strong showing in the Champions League, with all five English clubs reaching the last 16, something that’s estimated to have brought in around £71 million worth of additional revenue.
Dan Jones, partner and head of the Sports Business Group at Deloitte, commented: “Premier League clubs’ revenues continued to reach new heights in 2017/18.
“Tottenham Hotspur’s relocation to Wembley Stadium and increased commercial activity, including the commencement of their new kit deal with Nike, contributed more than half of the Premier League’s matchday revenue growth and almost a quarter of the Premier League’s commercial revenue growth respectively, driving the club’s record levels of pre-tax profitability.”
Tim Bridge, director in the Sports Business Group at Deloitte, added: “The increased wage expenditure was expected given the busy transfer market in the 2017/18 season.
“However, with the total value of Premier League broadcast rights expected to only marginally increase in the 2019/20-2021/22 broadcast rights cycle, increases in wage and transfer expenditure may be expected to slow in the medium term, as already signalled by the reduced estimated £1.4bn gross transfer spend in the current season.
“With the emphasis now on clubs to generate revenue growth from sources other than central broadcast distributions, it may be that we see the levels of pre-tax profit diminish over the next few years.”
