Revenues at the two Manchester clubs’ revenues increased by a total of £160m – roughly half of the total revenue growth recorded by the Premier League clubs in 2016, according to a report out today.
Deloitte’s annual study of football finances showed that the 20 top-flight English teams made a pre-tax loss of £110m, despite teams posting total revenues of £3.6bn. The losses followed two consecutive seasons in the black for the clubs.
Deloitte noted a 12 per cent climb in Premier League wage costs – to £2.3bn – and revenue growth of ten per cent.
18 out of 20 Premier League clubs made an operating profit in 2015/16, compared to 17 the previous year, and that 12 out of 20 clubs made a pre-tax profit in 2015/16, compared to 14 in 2014/15.
“The 2015-16 season saw Premier League clubs grow revenues by almost 10% … with the two Manchester clubs alone responsible for more than 50% of the increase,” said Dan Jones, head of the Sports Business Group at Deloitte.
Mr Jones said Manchester United’s participation in the 2015-16 Uefa Champions League, along with continued strong commercial revenue growth, resulted in a 30% increase in revenue to £515m, making them the world’s highest revenue-generating club.
“Increased distributions to clubs competing in Europe, under the new Uefa broadcast rights cycle – notably Manchester City, who reached the semi-finals of the Uefa Champions League – also contributed to Premier League clubs’ revenue growth,” Mr Jones added.