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The European football market reported record-breaking revenue of €38bn in the 2023/24 season, a growth of 8% (€35.3bn in 2022/23), according to the 34th Annual Review of Football Finance, published by the Deloitte Sports Business Group.

The ‘big five’ European leagues – the Premier League, Bundesliga, LaLiga, Serie A, and Ligue 1- generated €20.4bn in revenue, rising by 4% to surpass the €20bn mark for the first time.

Premier League clubs again generated the highest revenue of Europe’s leagues, reporting aggregate revenue of £6.3bn, a 4% increase on the previous season. This growth was primarily driven by expansion of clubs’ commercial offerings which also led to them generating more than £2bn in commercial revenue for the first time.

The Premier League’s traditional ‘big six’ clubs reported lower average revenue growth (3%) than amongst the rest of the League’s consistent clubs (11%). This is in part due to the displacement of some clubs from the European stage and the subsequent impact this has on all primary revenue streams.

Premier League clubs’ combined matchday revenue surpassed £900m (£909m) for the first time, rising by £43m (5%). Broadcast revenue saw a marginal 2% increase to £3.3bn in the penultimate season of the league’s three-year rights cycle, despite UEFA distributions to Premier League clubs decreasing in line with on-pitch performance in European competitions.

Overall, Premier League clubs’ aggregate operating profit grew by 36% to over £0.5bn, the highest since 2018/19, due to regulatory scrutiny and sanctions encouraging a better balance between costs and revenue.

Premier League clubs’ net debt reached £3.5bn at the end of the 2023/24 season (up 12% from 2022/23), driven by funding of stadium and facilities expenditure, as well as the continued investment in men’s playing squads.

Tim Bridge, lead partner in the Deloitte Sports Business Group, said: “A focus on stadia development and diversification of commercial revenues led to growth across the European football market in the 2023/24 season. 

“However, clubs and leagues cannot afford to take their eye off the ball as new challenges, including an evolving regulatory landscape and changing fan behaviours, arise.

“The pressure is mounting for more clubs to drive additional revenue at the same time as managing rising costs. Moreso than ever, leaders and owners must recognise the great responsibility they have of managing these businesses, capturing the historic essence of a football club while honouring its unrivalled role as a community asset for generations to come.”

Outside of the ‘big five’, EFL Championship clubs recorded aggregate revenue of £958m in 2023/24, up 28% on the previous season, driven by the entry of clubs to the league which generated higher revenues than those which exited at the end of the 2022/23 season.

The scale and fan following of the clubs entering the Championship contributed to the 52% aggregate growth of Championship clubs’ commercial revenue to £303m, while record league attendances drove matchday revenue to a new high of £210m.

Championship clubs’ aggregate wage costs rose to £892m (2022/23: £709m), reversing the trend of four consecutive seasons of wage costs reductions. However, revenue growth exceeded that of wage costs for a second consecutive season, and only the second time since 2016/17.

Consequently, Championship clubs’ aggregate wages/revenue ratio improved slightly to 93% (2022/23: 94%).  However, for the second consecutive season, all Championship clubs generated operating losses.

League One clubs’ average revenue fell by 7% in 2023/24 to £9.1m, impacted by the departure of two of the highest revenue-generating clubs through promotion. Conversely, League Two clubs’ average revenue grew by 22% to £6.6m. Wrexham (£27m) made up 17% of aggregate League Two club revenue, having generated revenue which more closely resembles that of a consistent Championship club (2023/24 average: £31m).

Bridge, concluded: “Championship club revenue may have increased in the 2023/24 season, but continued operating losses paint a mixed picture. As we see sustained investor interest throughout the English football pyramid, long-term strategies must be established to ensure financial stability across the league.

“Now more than ever we are seeing the EFL faced with an incredible growth opportunity to leverage the brand strength of some of its member clubs. With on-pitch drama and dedicated fanbases, the EFL could well deliver an unrivalled experience that engages fans like never before.”

Credit: fcbusiness

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