Premier League Starts Again

The Premier League is often viewed through the lens of sport, but it has also become one of the world’s most powerful entertainment businesses. Ahead of the new season, Premier League clubs have already spent €2.7bn on player transfers, exceeding the combined transfer spending of clubs in Italy’s Serie A, Spain’s La Liga and Germany’s Bundesliga. Record revenues are helping fund this spending, with Deloitte forecasting Premier League revenues of £7.4bn this season.

What is particularly striking is that higher revenues have not translated into higher profits. Despite years of revenue growth, Premier League clubs have collectively failed to make a profit since the 2017-18 season, as much of the additional income has been reinvested into players and wages. The league’s competitiveness has created an arms race, with clubs under pressure to continually spend in order to remain competitive both on and off the pitch.

Source: Financial Times, Deloitte, GoodBody