4 per cent to almost £2.4bn (2010-11: £2.3bn), with another year of impres- sive commercial revenue growth, largely focussed among the highest ranked Premier League clubs, and relatively sta- ble matchday and broadcast revenues. Premier League operating profits
went back up towards £100m and were at their highest level for four years. Two contrasting movements resulted in the £25m increase, being a £109m reduction in the combined operating losses of Man- chester City and Chelsea but decreased operating profits at many other clubs, including some caused by clubs’ early exit from European competitions. Only two other clubs which had partici-
pated in the Premier League in 2010-11 improved their operating profitability. Nonetheless in the 14 years since 1997-
98, while revenue grew by £1,778m, operating profits have grown by just £2m. Only half of the Premier League clubs make an operating profit. While the Premier League clubs
overall generated an operating prof- it in 2011/12, once player trading is
Issue 2 2013 © cybertrek 2013
accounted for they made a loss of £183m. Taking account of interest and other income/taxes and exceptional items, the Premier League recorded a pre-tax loss of £245m (2010-11: £375m). For a second successive year, the pre-
tax losses for Premier League clubs have decreased and are now at their lowest level since 2005-06 and while the Premier League at least converted some of its in- crease in revenue into operating profit, the Football League was unable to follow suit. Despite strong revenue growth of 8 per cent, its operating losses grew by 11 per cent to £216m – a record level.
BROADCASTING Premier League broadcast revenue in- creased by £11m (1 per cent) to £1,189m in 2011-12. This was the second year of its three year broadcast cycle and little underlying growth was expected follow- ing the £138m (13 per cent) increase in broadcast revenue in 2010-11. The top-to-bottom earnings ratio of
Premier League clubs in respect of cen- tral domestic league distributions was
1.55:1. The ratio is lower than in other top European leagues, where the esti- mated equivalent ratios are 12:1 in La Liga, 4:1 in Serie A, 4:1 in Ligue 1 and 2:1 in the Bundesliga. Broadcast revenue accounted for 50 per cent of total Pre- mier League revenue in 2011-12. It will remain broadly at this proportion for a sixth successive season in 2012-13 before rising to record levels of around 55 per cent in 2013-14, when revenue from the new broadcast deals flows to clubs. The average Premier League club will receive around £25m more in central TV distri- butions from 2013-14 than they have in 2012/13 with the lowest placed Premier League club at the end of the 2013-14 season receiving around £60m, and the champions around £95m.
COMMERCIAL Of the three revenue sources, com- mercial revenue was the main area of growth in 2011-12, increasing by £80m (15 per cent) to £624m. The two Man- chester clubs delivered the majority of this increase with Manchester City up
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