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Premier League retains its financial lead

The annual appearance of the Deloitte Review of Football Finance is a major event for football finance geeks and further coverage will be provided in the days to come. Meanwhile, you can always read it for yourself: Annual review

The report notes, 'This 28th edition charts the latest movements on the ever fluid football finance landscape. Whilst the Premier League retains its leadership in financial terms, the Premier League clubs face challenges to continue to deliver revenue growth and profitability. Meanwhile, Championship clubs are increasingly gambling to reach the top, and strenuous and creative efforts are being made by other European football leagues to enhance their own global appeal and close the gap to the Premier League.'

'The continued revenue growth of the Premier League and Football League has contributed to another year of growth in the overall size of the European football market. The 2017/18 season total got a boost from the 2018 FIFA World Cup being held in Russia, as well as revenue growth in all ‘big five’ leagues.

'Whilst the Premier League continues to lead the way, Spain and Germany are engaged in ongoing competition to be second in line. Germany leapfrogged Spain following the commencement of their new four-year broadcast deal. We expect Germany to retain their status as the second highest revenue generating league in the next edition, with La Liga potentially overtaking again in 2019/20.'

However, following record operating profits in 2016-17, increased spending on player wages contributed to reduced operating profits. They fell by 16% to £867m, still the second highest level of profitability to date. 'This wage spending is an indication of the competitive nature of the division, with the top clubs competing for financially lucrative places in Uefa competitions, and clubs lower down the division fighting to remain in the Premier League itself,' Deloitte's Dan Jones.

The report notes, 'Tottenham Hotspur (39%) became only the third club to spend less than 40% of its revenue on wages since 1998/99, but this was not detrimental to on-pitch performance as the club qualified for the Champions League once again, and subsequently reached the final in Madrid.'

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