RESEARCH
Clubs competing in the Champions League reported revenues three times above the Premier League average
Premier League matchday revenue decreased marginally in 2011-12 due to lower attendances The bigger story is the substantially increased
revenue accruing to clubs as a result of the broadcast deals from the start of the 2013-14 season
£54m and Manchester United up £14m. The other four ‘big six’ clubs – Arse- nal, Chelsea, Liverpool and Tottenham Hotspur – all increased their commercial revenue in 2011-12. The combined £21m increase demonstrates continued global demand for association with the top Premier League clubs. Outside the ‘big six’ clubs, only the
three promoted clubs and Wigan Athletic grew commercial revenue in 2011-12, highlighting the challenge for those Pre- mier League clubs without significant global profile when it comes to upwardly negotiating deals or extending the range of their commercial partners.
MATCHDAY Matchday revenue decreased margin- ally to £547m in 2011-12. This is only the second time Premier League matchday revenue has gone down since we started analysing revenues across the three streams in 1996-97. Attendances across the Premier League
in 2011-12 were marginally down on 2010-11 and the economic climate con- tinues to challenge clubs to be prudent in setting ticket prices and exerting pres- sure on the corporate hospitality market. At 23 per cent of total Premier League
revenue, matchday revenue is now the smallest of the three revenue catego- ries and looks set to remain so for the
foreseeable future. From 2013/14 and the first year of the new round of broadcast deals, this revenue is forecast to con- tribute less than 2 per cent to the total – compared with 48 per cent in 91/92, the season before the Premier League started. Nonetheless, the Premier League clubs’ matchday revenue will still be the highest in Europe in absolute terms.
REVENUE PROFILES Average revenue per Premier League club in 2011-12 was £118m (2010-11: £114m), split between matchday (£27m), broadcast (£60m) and commercial (£31m) revenue streams. This simple average masks the signifi-
cant polarisation that exists between different groups of clubs in the division. The four clubs competing in the
Champions League (Arsenal, Chelsea, Manchester City and Manchester United) and two others – Liverpool and Totten- ham Hotspur – had average revenue of £230m between them in 2011-12 – over three times the average revenue (£70m) of the other 14 clubs in the Premier League. Qualification for the Champions League remains a key revenue diferentia- tor among the top Premier League clubs, effectively guaranteeing them at least £30m in additional revenue from UEFA distributions and associated matchday and commercial uplifts.
28 Read Sports Management online
sportsmanagement.co.uk/digital The average revenue of clubs in the
Championship was £20m in 2011-12. This was made up of an average of nearly £30m for the seven clubs which were in receipt of parachute payments and £16m for those who were not.
LOOKING FORWARD 2012/13 is expected to see another year of modest revenue growth in the Premier League. Three things are driving this: size- able increases in the commercial revenues at some clubs; increased attendances and improved matchday revenue from the change in club mix within the Premier League; and modest growth from broad- cast deals. These changes are expected to take revenues up to nearly £2.5bn. The bigger story is the substantially
increased revenue accruing to clubs as a result of the new broadcast deals from the start of the 2013/14 season. The total value of the new broadcast rights pack- ages, including domestic and overseas
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