Home > Growth, Labour Market, Sport > No sign of recession in European Football.

No sign of recession in European Football.

Last week the 21st edition of the Deloitte Annual Review of Football Finance was published. It analyses and comments on notable financial developments within world football for the year 2010/11. Overall the results of the publication indicate that the European Football market continued to go against the trend of the economic conditions that were prevalent in Europe and the global economy.

Some of the key points from the publication:

The Big Five Revenues – EPL, Bundesliga, La Liga, Serie A, Ligue 1

The total revenue in the Big Five grew by 2% to €8.6bn. The English Premier League continued to be the biggest revenue earner with €2.5bn with the Bundesliga some way behind. France’s Ligue 1 was the one of the Big Five to have a drop in revenue with €1,040m. See graph below.

One of the main concerns with the European football market is keeping a lid on the costs. The big five leagues wages increased by over €104m and that exceeded €5.6bn in 2010/11. The English Premier League not surprisingly had the highest wage costs at €1,771m which was €600 higher than the next league.

United v City

Manchester City set a new Premier League record with an £82m loss, whilst their cross town rivals United generated an operating profit greater than £100m for the first time.

Chelsea Highest Wages

For the eighth successive season Chelsea had the highest wage bill – £191m
Manchester City – £174m
Manchester Utd – £153m

There was a strong correlation in the EPL between the level of spending and the final league position. Spend money and you’ll get results.

Chelsea also had the highest wage cost per league point £2.7m (71 points). Champions Manchester Utd had a wage cost of £1.9m per point and Blackpool had the lowest with £0.6m.

The four clubs of the EPL who competed in the Champions Lague in 2010/11 generated almost 60% of the £548m in matchday revenue, demonstrating the high levels of ticket demand they enjoy and the higher ticket prices they can command.

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