Player costs eating up record BPL revenues

After two years of profit, rising costs and wage bills are to blame.Dan Jones, partner and head of the Sports Business Group at Deloitte, said: “The 2015-16 season saw Premier League clubs grow revenues by nearly 10% to £3.6bn, with the two Manchester clubs alone responsible for more than 50% of the increase”.Local rivals Manchester City’s progression to the semi-final of the Champions League last season (where the team was eventually knocked out by Real Madrid), helped the club post revenues of £392.6 million.United’s revenue grew to a massive £515m, this made them top in the Deloitte Football Money League for the very first time since 2003/04.Combined revenue for the previous season was 3.4 billion pounds, according to Deloitte’s study.”The 2015-16 season saw Premier League clubs grow revenues by nearly 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.Dan Jones, partner and head of the Sports Business Group at Deloitte, said the two Manchester clubs alone contributed 50% of the total increase in revenue due to their participation in the Champions League last season.He said an example of these one-off items was Chelsea making a big financial provision against the early cancellation of their kit supply deal with Adidas.Deloitte also attributed £110m of “exceptional costs” for the surprise loss and said it fully expected clubs to return to record levels of profitability in the 2016/17 season.”We continue to see television deals go up, and there is no reason to believe that will end any time soon”, said Mr Jones.Sky and BT paid a record £5.136 billion for the latest round of TV rights, a sum 71 per cent higher than the previous deal. It was an increase of £200 million, or 9%, on the same period a year ago – and the Manchester clubs were responsible for half of this.

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