Premier League operating profit hits five-year high as PSR bites
Premier League clubs recorded their highest collective operating profit since 2019 last year as controversial PSR regulations enforced a greater emphasis on balancing the books.
Aggregate operating profits among the 20 teams in the top division increased by 36 per cent to £533m in 2023-24, according to Deloitte’s latest Annual Review of Football Finance published today.
Premier League clubs’ revenue grew four per cent to a record £6.3bn which, combined with tougher profitability and sustainability rules (PSR), led to their best operating profit figures since before the Covid-19 pandemic.
“We are starting to see a bit of a ripple when it comes to clubs focusing on compliance within regulations,” Jennifer Haskel, knowledge and insight lead in the Deloitte Sports Business Group, told City PM.
“As we continue within this evolving regulatory landscape, clubs are being run more and more as traditional businesses. While clubs are continuing to grow the top line and diversify their revenue streams, hopefully that will lead to more long term sustainability and profits.”
Both Everton and Nottingham Forest received points deductions in the 2023-24 season for breaching PSR, while other teams – including Aston Villa and Chelsea – narrowly avoided sanctions with some late player trading.
Premier League clubs made a pre-tax loss of £136m, although that was an improvement of almost £550m on the previous season. The relegation of heavily loss-making teams also contributed to the improvement.
Regulator uncertainty unhelpful, says Deloitte
The total European football market grew by eight per cent to a record €38bn, with the Big Five leagues – England, Spain, Italy, Germany and France – generating more than €20bn for the first time. That growth may plateau due to a French media rights crisis, however, Deloitte said.
Ahead of the imminent introduction of the Independent Football Regulator, meanwhile, the report warns that “there can be no doubt that the system in English football is under strain”.
“We still await the output of the Independent Football Regulator to fully understand how this may impact the game in England, but it is clear that the way in which the game is governed and the regulation that underpins it needs to seek to drive value, fan engagement (both physical and digital) and competitive balance,” writes Deloitte’s lead sports partner Tim Bridge.
“The level of interest and the demand to engage with English football remains high and investors still see the opportunity, particularly when there is a strong community link or adjacent investment opportunities, but the lack of clarity over the future regulatory regime is now unhelpful.”