Premier League remains financially dominant

Although it is some time since the latest Deloitte Money League came out, it is worth looking at what it tells us about Premier League clubs.

The total number of English clubs in the Top 20 fell from last season’s all-time high of 11 to 8, with Italy, Germany and France all increasing their representation in the elite group.   Nevertheless, England’s eight clubs was still at least twice as much as any other country.

However, the financial strength of the Premier League is still evident when looking at the Top 30, as nearly half of the clubs on the list come from England. Their 14 clubs are nearly three times as much as the next highest, Italy with 5 clubs.

There are six English clubs between positions 21 and 30, including newly promoted Fulham and Leeds United, who were relegated last season.

Despite this domination, the number of English clubs in the Top 30 actually decreased by 2 from 16 to 14. Their all-time high was back in 2014/15 with an incredible 17 clubs.

Changes in rankings

After two years at the top of the rankings, Manchester City fell to second place, despite winning the Premier League, the Champions League and the FA Cup, which helped them to a club record £718m.

Liverpool suffered the greatest fall in year-on-year rankings, moving from third to seventh, as the previous season benefited from much success on the pitch, including reaching the Champions League final and two domestic cups.

Three other English clubs also dropped down the Money League: Manchester United and Chelsea were both one place lower, while West Ham fell three places to 18th.

Only two English clubs managed to improve last season. Tottenham Hotspur overtook Chelsea, boosted by revenue from the new stadium, moving up from ninth to eighth, to claim the title of richest club in London. In addition, Newcastle’s turnaround under their new Saudi Arabian owners took them from 20th to 17th, as revenue shot up from £180m to £250m.

Fulham demonstrated the financial strength of the Premier League, as their £182m revenue in the first season after promotion placed them 26th worldwide.

Five other English clubs made the top 30: Aston Villa £218m, Brighton £201m, Leeds United £181m (despite this being a relegation season), Crystal Palace £180m and Everton £172m.

The importance of European competition, especially the far more lucrative Champions League, is very well illustrated by these figures. As an example, Arsenal’s £171m broadcasting income was significantly lower than Liverpool’s £245m, largely due to the Reds’ £71m Champions League receipts.

English clubs were boosted by the new Premier League TV deal, which commenced in 2022/23. However, perhaps the biggest driver of YoY movements is European qualification and progress in Europe, e.g. Liverpool’s £16m decrease was linked to only reaching the last 16 of the Champions League, compared to going all the way to the final the previous season.

The size of the Premier League TV deal is highlighted by the significant percentage of total revenue generated by what Richard Masters would no doubt describe as “small” English clubs, e.g. Newcastle United 66% and West Ham 62%. The other side of the coin is that this also underlines the devastating impact of relegation from England’s top flight.

Commercial revenue becomes more important

Commercial revenue is clearly becoming more important with 17 of the Top 20 clubs reporting a year-on-year increase. Growth was largely attributable to improved retail sales, revenue from non-matchday events and the bounce-back of sponsorship income which had been impacted by the pandemic.

The largest growth was delivered by the Spanish giants, Barcelona and Real Madrid, with £118m and £81m respectively, followed by two English clubs, Manchester United £47m and Tottenham £45m.

Looking at the seven clubs with the highest commercial revenue, even though those from the continent generate the most, the highest growth in the last five years has actually come from two English clubs, who are both up by more than €100m, namely Manchester City €133m and Liverpool €127m.

City’s £347m is comfortably a Premier League record for commercial revenue, though their massive growth will no doubt cause fans of other clubs to raise a quizzical eyebrow.

Commercial sponsorships, merchandising and event revenue have become increasingly important with four clubs generating more than half of their income from this revenue stream: Bayern Munich 56%, Barcelona 51%, Juventus 50% and PSG 50%.

The highest share at English clubs is Manchester City and Manchester United, both 48%. In contrast, Newcastle United and West Ham were only 19% and 21% respectively.

Tottenham overtook Arsenal in terms of revenue in 2019 and earned £86m more than their rivals last season (£549m vs. £463m). This is largely due to their new stadium, which has led to £15m more in match day and £57m more in commercial. The gap will be narrowed this season, as Arsenal have returned to the Champions League, while Spurs did not qualify for Europe at all.

Looking at how clubs’ revenue ranking compares to wages, we can see that the clubs who have “outperformed” their wages the most are Real Madrid, Manchester United and Milan. On this basis, the worst performers were Chelsea, Barcelona and Atletico Madrid.