Annual Review of Football Finance 2013

Sports Business Group
June 2013
Turn on, tune in, turnover
Annual Review of Football
Finance – Highlights

Our first football finance report was produced in June
1992, a couple of months ahead of the start of the
inaugural Premier League season. For more than
20 years we have documented clubs’ business and
commercial performance, striving to provide the most
comprehensive picture possible of English professional
football’s finances, set within the context of the
regulatory environment and the wider European game.
The Sports Business Group at Deloitte provides an
in-depth analysis of football’s finances in its 90 page full
report, which includes:
Europe’s premier leagues
Scale of the overall European football market;
Comprehensive data and analysis of trends for clubs in
the ‘big five’ leagues including revenue breakdowns,
wage costs, operating results, and match attendances;
Factors impacting on clubs’ future revenues; Key financial
indicators for eleven more European leagues.
Industry insights
Our perspectives on ten topics facing football, including
the impact of UEFA’s new financial fair play regulations,
emerging football markets in Brazil and the Middle East,
governance matters in the German Bundesliga, the
development of women’s football, business analytics in
football, and clubs’ investment in player training facilities.
Databook
The full report, incorporating a pull-out Databook,
includes over 8,000 data items, prepared on the basis of
our unique and long-established methodologies.
The following sections of the full report include
comprehensive data and analysis of the business drivers
and financial trends for clubs in the top four divisions
of English football, with a particular focus on Premier
League and Championship clubs. The analysis covers
through to the end of the 2011/12 season and we also
include some pointers to future financial results.
Deloitte Annual Review
of Football Finance 2013

Revenue and profitability
Analysis of matchday, broadcasting and commercial
revenue streams; Revenue projections to 2013/14;
The financial impact of participation in UEFA club
competitions, promotion and relegation; Operating
results and pre-tax profits and losses; Tax contribution
to Government.
Wages and transfers
Analysis of clubs’ total wage costs; The relationship
between revenue growth and wage costs; Club-by-club
analysis of wage costs including rankings, comparison
to on-pitch performance, and wages to revenue ratios;
Estimated total player wages; Cost control regulatory
developments; Premier League wage costs projections for
2013/14 season; Player transfer spending; Transfer flows
between the top four divisions and to agents.
Stadium development and operations
Capital investment by clubs in the top four divisions,
2011/12 and 20 year history; Average attendances and
stadium utilisation up to 2012/13 season; Ticketing and
matchday revenue strategies and trends.
Club financing
Key trends in Premier League clubs’ financing since 1992;
Net debt position of Premier League and Championship
clubs, in aggregate and analysis of the top ten clubs;
Premier League clubs’ net assets position.
Please visit our website at www.deloitte.co.uk/sportsbusinessgroup
to access/download a free copy of the
Deloitte Annual Review of Football Finance 2013 – Highlights
and/or to purchase a copy of the full report.
Half of all profits from sales of the report will be donated to
Prostate Cancer UK. Prostate Cancer UK is a Deloitte National
Charity Partner for 2013-16

Contents
5 Foreword
10 Delivering more to sport
12 Delivering more to football
13 Highlights
29 Prostate Cancer UK and
The Football League partnership

Turn on, tune in, turnover Annual Review of Football Finance – Highlights 5
Foreword
Welcome to the 22nd edition of the
Deloitte Annual Review of Football
Finance, our analysis and commentary
on recent financial developments and
future prospects in the world’s most
popular sport.
Start me up
Our review covers the financial performance of clubs
in the 20th Premier League season, and illustrates the
phenomenal growth that the sport has enjoyed.
In 1991/92 the 22 clubs of the then Football League
First Division had collective revenue of £170m – in
2011/12 the revenue of the 20 Premier League clubs
was almost 14 times greater at over £2.3 billion, while
five clubs each generated revenue greater than that
of the entire First Division twenty years previously.
Despite operating in a challenging economic
environment, English club football’s profile, exposure
and increasingly global interest have continued to
drive revenue growth, allowing the clubs to invest in
top quality playing talent who in turn help to boost
the league’s popularity and support further revenue
growth, completing a virtuous circle. The Premier League
continues to be a huge success in this respect.

Next season is the first in the Premier League’s seventh
set of broadcast deals, which have delivered another step
change in values. Live domestic rights have been sold for
over £1 billion per season, a staggering increase of almost
70% in value, and when all media rights are included the
total value is c.£5.5 billion over the deals’ three season
duration. These are phenomenal amounts, which cement
the Premier League’s position as the world’s strongest
football league in commercial terms – overall its clubs
are likely to see a £600m increase in revenues to over
£3 billion in 2013/14.
Top level sport, and football in particular, has always
been key content, given its capacity to capture the public
imagination and attract an audience. Sports reporting
has been a key driver of the historical popularity of print
media and now online news consumption, and it retains
the capacity to deliver huge terrestrial TV audiences, as
the 20m who tuned in to watch England’s Euro2012
quarter-final against Italy illustrates.
Most recently, live top level football has been
a cornerstone of many successful Pay-TV models.
Previously, increases in rights values have been driven by
competition from Pay-TV operators keen to use Premier
League rights to develop their subscriber base, and we
have seen a number of challenges to Sky, from ITV
Digital, to Setanta and most recently ESPN. In recent
years we have seen BSkyB build upon its success and
strong track record of high quality delivery to the public
in the Pay-TV market, and capitalise on the opportunities
presented by technological progression to make inroads
into the phone and broadband markets. This time
competition for the broadcast rights is coming from
a traditional telephony operator approaching from
the opposite direction and entering the sports
broadcast market.

As such, and given its resources, BT could reasonably be
expected to be embarking on a different and longer term
journey into UK sports broadcasting than previous new
entrants. BT has invested heavily in its rights portfolio
in preparation for the launch of the BT Sport channel in
July. We will monitor developments with interest, as the
scale and pace of the channel’s success may have a huge
impact on football’s longer term financial fortunes.
Not fade away
Football’s enduring popularity is further illustrated by the
progress which clubs are making in other areas. Average
Premier League attendances in 2012/13 reached almost
36,000 with capacity utilisation exceeding 95% for the
first time, although with limited stadium developments
and a tough marketplace for corporate hospitality,
matchday revenue remains around its 2006/07 level.
The leading clubs have been more successful in
developing commercial revenue, largely due to a series
of new sponsorship deals.
As well as considerably improved values for traditional
inventory, such as shirt fronts and kit supply,
technological advancements and global popularity
have facilitated the delivery of complex and extensive
partner programmes subdivided into geographic as well
as product categories. However, sponsorship is an area
where there is significant polarisation, with smaller clubs
having to work very hard to maintain, let alone grow,
values.
In the Championship, revenue growth over the next
couple of editions of our review is likely to be more
limited and heavily influenced by Premier League
parachute payments and solidarity distributions, which
may comprise over a third of Championship clubs’ total
revenue from 2013/14, up from their current quarter.
This appears to be having a limited material impact on
competitive balance; West Ham United and Hull City are
the only Championship clubs in the last three seasons to
be promoted with the aid of parachute payments.

It seems the challenge of managing the negative impacts
of relegation continues to outweigh the financial
advantages presented by parachute payments.
Paint it black
The increased revenue from 2013/14 means that Premier
League clubs are once again presented with a golden
opportunity to improve cost control and hence financial
performance. In 1995, midway through the Premier
League’s first broadcast deal, we commented that
“we believe that controlling the wage bill is, long term,
football’s biggest challenge” and this challenge remains.
If anything, the trend for any additional revenue
generated to disappear as additional costs, the
widely quoted ‘prune juice’ effect, has become more
pronounced. Wage costs have consumed 83% of Premier
League clubs’ revenue growth since 2006/07 and the
wages to revenue ratio has reached 70%, while operating
margins are now only 4% and are forecast to narrow
even further in 2012/13.
In the Championship the situation is more severe: the
wages to revenue ratio has hovered threateningly at
around 90% since 2007/08, with operating losses once
again reaching record levels. For many years the division
has struggled financially – the combination of clubs
adjusting to the impact of relegation from the Premier
League and others aspiring to achieve promotion,
has now delivered almost a decade of ever increasing
operating losses. Championship clubs continue to spend
30% more than they generate – a clearly unsustainable
position without owner benefaction, a source of funds
upon which the Football League is trying to reduce its
member clubs’ dependence.
We wonder whether this time we will, at last, see a
change in clubs’ behaviour. Recent years have seen
a greater desire among football’s administrators to
collectively improve financial performance, perhaps
given additional momentum by the lack of open market
funding opportunities in the uncertain financial climate.

2011/12 was the first season’s financial performance
that will be assessed as part of the introduction of UEFA
Financial Fair Play Regulations, which are due to start in
earnest from 2013/14.
The Premier League clubs have agreed to a system of
enhanced financial regulations, designed to improve
the sustainability of its clubs. If they are successfully
implemented they could deliver significant benefits.
The Premier League clubs’ current slim operating profit
margins, coupled with the imminent boost to revenue,
mean that a reduction of even a few percentage points
in the rate of leakage of revenue to wages could provide
huge benefits – by facilitating sustained investment in
professional football’s infrastructure, notably in stadia,
youth development, community programmes and
marketing, which would in turn support the long term
development, growth and stability of the game and its
clubs. We look forward to reviewing progress in future.
We hope you enjoy this edition.
Dan Jones
Partner, Sports Business Group

Delivering more to sport
Deloitte has a unique focus on the
sports sector, in the UK and across the
world. Our experience, long-standing
relationships and understanding of
the industry mean we bring valuable
expertise to any project from day one.
For over 20 years we have worked with
more sports organisations than any
other advisers.
Our specialist Sports Business Group at Deloitte provides
consulting, business advisory and corporate finance
services including:
• Business planning
• Revenue enhancement and cost control
• Market analysis and benchmarking
• Strategic review
• Economic impact studies
• Sports venue development
• Sports regulation advice
• Due diligence
• Corporate finance advisory
• Business improvement and restructuring
• Forensic and dispute services
Services provided by our specialist team of sport and
leisure consultants within Deloitte Real Estate include:
• Project and programme management
• Feasibility studies
• Design appraisal
• Bank loan monitoring
• Cost management advice
• Planning and development
• Business rates
Deloitte are also audit and tax advisers to many
sports businesses.

Financial review and
benchmarking of the men’s
professional tennis tour
tournaments.
Extensive economic impact
study of the British
Horseracing industry.
Assisting the International
Cycling Union with its
wide-ranging stakeholder
consultation programme,
“A Bright Future for Cycling”.
Feasibility study of Ireland
hosting Rugby
World Cup 2023.
Review of the organisational
structure of volleyball’s
international governing body.
Provision of financial and
technical consulting services
in connection with the
privatisation of sports clubs in
the Kingdom of Saudi Arabia.
For further details on how Deloitte can add value to your
project and your business, visit our website www.deloitte.co.uk/
sportsbusinessgroup or contact Dan Jones.
Telephone: +44 (0)161 455 8787 Email: sportsteamuk@deloitte.co.uk

Our services
Their results
Clubs Confederations
Investors, owners
and financiers
Business planning
and strategy
Governance and
organisational design
Financial budgets
and projections
Benchmarking and best
practice advice
Club licensing and cost
control regulations
Economic impact
studies
Business and venue
feasibility studies
Acquisition, disposal
and debt advisoryLeague and competition
restructuring
Advice on the
development of stadia
and training facilities
Financial and commercial
due diligence
Ticketing and hospitality
strategy
Customer data analytics
and surveys
Sports marketing
businesses
Local and national
government
Sponsors and
commercial partners
Broadcasters
Leagues
National associations
Our clients
Well informed
investment decisions
Increased matchday and
non-matchday revenues
Effective league
structure, operation and
competition
Higher ticket sales,
stadium utilisation and
attendances
Competitive advantage
from better data and
industry insights
Smooth transition
to new investment
and financing
Sound broadcast and
commercial rights
strategies
Greater commercial
income
Improved cost
management Improved governance
and risk management Superior business
performance
Powerful information to
influence key shareholders
Delivering more to football
Deloitte bring an unparalleled breadth
of services, expertise and experience
to support our clients in the football
business.

Highlights
Europe’s premier leagues
• In 2011/12 the European football market grew to
€19.4 billion (up 11%), of which the ‘big five’ leagues
had a market share of 48% (€9.3 billion). In particular,
the top end of the game continues to show resilience
in the face of wider economic challenges in Europe.
• With a gap of €1 billion over the second placed
Bundesliga in 2011/12, the Premier League retains its
status as the football world’s leading revenue generating
club competition, with the clubs’ revenue growing 16%
(as measured in euros, and up 4% measured in sterling).
• The relative strength of Germany’s corporate sector
and economy is reflected in commercial/sponsorship
contributing almost half of the clubs’ total revenue in
2011/12. Average revenue for a Bundesliga club was
€104m (up 7%), compared with €146m (£118m) for
a Premier League club.
• From 2013/14 the Bundesliga clubs will enjoy a
significant increase in revenue, In particular from their
domestic broadcast deals that are up c.50%, albeit
the Premier League’s new domestic and international
broadcast deals mean it will drive further ahead in
revenue terms from 2013/14.
• The lower revenue growth for La Liga and Serie A clubs
is reflective of the challenging economic conditions in
these countries. La Liga remains highly polarised, with
€1 billion (56%) of 2011/12 revenues relating to Real
Madrid and Barcelona, exacerbated by their ability to
sell their own broadcast rights. Discussions continue in
Spain about changing to a collective rights model and
more equal distribution mechanism in the near future.
• Italian clubs continue to be most heavily reliant on
broadcast revenue, which contributes 59% (€0.9 billion)
of their total revenues. Already relatively weak matchday
revenues declined further (down 3%), and contribute
just 12% of Serie A clubs’ overall revenues. Juventus
bucked this trend and demonstrate how investment in
stadia facilities can improve the matchday experience,
attendance levels and revenues.

Top division clubs’ revenue 2011/12
• Matchday revenue is also relatively weak for
Ligue 1 clubs, contributing just 11% of their overall
revenues. New investment in stadia ahead of France
hosting UEFA EURO 2016 should help drive up match
attendances and revenues in future. The 9% growth
in Ligue 1 revenues in 2011/12 was almost entirely
due to “the PSG project”, with the Paris club’s revenue
remarkably increasing 120%.
• Elsewhere in Europe, Russia has the next highest
revenue generating top tier league (€636m), followed
by Turkey (€444m) and the Netherlands (€434m).
England’s second tier Football League Championship
is positioned seventh in Europe with total revenues
of €588m (£476m).
Top division clubs’ total wages and ratio
to revenue 2011/12
• Although all of the ‘big five’ leagues reported a rise
in wage costs in 2011/12, the rate of growth was
slightly slower than for revenue, contributing to stable
or reducing wages/revenue ratios and an overall
improvement in profitability.
ENGLAND
billion
+16%
GERMANY
billion
+7%
ITALY
billion
+1%
FRANCE
billion
+9%
SPAIN
billion
+3%
75%
YLATI
70%
DNALGNE
51%
YNAMREG
74%
ECNARF
60%
NIAPS

European football market 2011/12
• The Bundesliga again stands out, with wage costs
absorbing less than 25% of its revenue growth in
2011/12 such that the wages/revenue ratio reduced
further to 51%. Their strict domestic club licensing
regime is part of a German approach that constrains
clubs’ costs. The average wage costs for a Bundesliga
club was €53m, compared with €102m (£83m) in the
Premier League in which the wages/revenue
ratio remained at 70%.
Top division average match attendances 2011/12
• For the fifth successive year, in 2011/12 the Bundesliga
(€190m) and Premier League (€121m) were the only ‘big
five’ leagues to generate an operating profit (before
player trading and finance costs).
€19.4 billion
+11%
44,293
+5%
34,646
-2%
26,050
+1%
18,869
-4%
22,005
-7%
FranceEngland ItalyGermany Spain

• In Spain the combined wages/revenue ratio for
Real Madrid and Barcelona reduced to a modest
47%, whereas it increased to a concerning level of
77% for the other 18 La Liga clubs, many of whom have
suffered financial difficulties in recent times.
• Serie A clubs had the highest wages/revenue ratio (of
75%) amongst the ‘big five’ leagues, and suffered the
highest operating losses (€160m) continuing their trend
of deteriorating profitability. In France, the Ligue 1 clubs’
operating loss of €67m was an improvement compared
with the previous season.
• The break-even requirement, the cornerstone of UEFA’s
Financial Fair Play Regulations, will apply to clubs in
UEFA competitions for the first time in the 2013/14
season and covers the clubs’ results for the 2011/12 and
2012/13 seasons. Some domestic competitions are also
following UEFA’s lead. The new era of cost constraints
aims to help clubs across Europe to achieve a more
sustainable balance between their costs and revenues
and encourages investment for the longer-term benefit
of football.
Revenue and profitability
• In 2011/12 the total revenues
of the 92 clubs in the top four
divisions of English football
exceeded £3 billion for the first time.
• Within the Premier League total of
£2,360m for 2011/12, Premier League
clubs’ revenues ranged from £320m
(Manchester United) to £53m (Wigan Athletic).
• There were six Premier League clubs with revenue
above the average (£118m), including the four clubs
that competed in the UEFA Champions League in
2011/12. Champions League football generated at
least £30m extra revenue per club, and around
£70m for Chelsea who won the competition.
• Commercial revenue was the main area of growth (up
15%) in 2011/12, in particular due to new sponsorship
deals at the two big Manchester clubs. Broadcast
revenue (up 1%) and matchday revenue (down 1%)
changed only marginally.
£118m
+4%
Average Premier
League club
revenue 2011/12

Premier League revenue mix 2011/12 • Premier League clubs’ revenue for 2012/13 is
estimated at £2,480m (up 5%), and then for 2013/14
there is a significant projected uplift of £600m (up
24% to £3,080m), largely driven by the first season
of the new broadcast deals.
• Domestic broadcast deals, largely relating to BSkyB
and new market entrant BT for the live television
rights, will generate around £3.4 billion over the three
seasons from 2013/14 (up about 60% on the previous
cycle). Overseas broadcast rights covering over
200 countries will generate over £2.2 billion (up over
50% on the previous cycle).
• Based on the Premier League’s long-established central
revenue distribution mechanism, for 2013/14 TV
monies to clubs are estimated to range between £60m
and £95m; on average an extra c.£25m per club. The
equivalent TV monies for 2011/12 ranged from £39m
(to relegated Wolverhampton Wanderers) and £61m
(to Premier League winners Manchester City).
Matchday
23%
Broadcast
50%
Commercial
27%

Premier League TV distributions (average club)
• The aggregate operating profit (before player trading
and finance costs) of Premier League clubs improved
to £98m in 2011/12; a margin equivalent to only 4%
of revenue. Only half of the Premier League clubs
made an operating profit.
• Premier League clubs’ net losses (after player trading
and finance costs) for 2011/12 were £245m (2010/11:
£375m). This improvement was largely due to lower
losses at Manchester City and Chelsea. Only eight
Premier League clubs made a net profit.
• Championship clubs’ revenues were £476m (up
13%) in 2011/12, mainly driven by more clubs being
in receipt of parachute payments from the Premier
League and the change in club mix within the division
following the previous season’s promotions and
relegations.
• In 2011/12, the average revenue of the seven
Championship clubs in receipt of parachute payments
was £29m (with only West Ham United from this
group gaining promotion at the end of the
season), and the average revenue for the other
17 Championship clubs was £16m. In the first three
seasons since 2009/10 when parachute payments
increased in value and duration, only two of the
nine relegated clubs have won promotion back to
the Premier League, and two have fallen below the
Championship.
+£25m
2011/12
£48m
£73m
2013/14 (estimate)

Average Championship club revenue 2011/12 • Championship clubs’ revenue for 2012/13 is estimated
at £460m, down 3% primarily as a result of lower
distributions in the first season of the Football League’s
new broadcast deal. Then, aggregate revenue for
2013/14 is projected to increase to over £500m,
including eight clubs in receipt of parachute payments.
There will also be a club with a parachute payment in
each of League 1 and League 2.
• The aggregate operating losses of Championship clubs
worsened to £147m in 2011/12; a long slide from an
aggregate operating loss of £35m back in 2003/04.
Only three Championship clubs made an operating
profit.
• Championship clubs’ net losses (after player trading
and finance costs) for 2011/12 improved to £158m
(2010/11: £189m), an average of £6.6m per club.
Only five Championship clubs made a net profit.
£20m
+13%

• This loss-making behaviour is, in part, due to the lure
of the Premier League promotion prize of at least
£120m. Each of the promoted clubs can expect a
revenue increase of more than £60m in 2013/14 and,
even if a club is relegated after one season, it will be
entitled to parachute payments over the following
four seasons of around £60m.
• In 2011/12 the average revenue of a League 1 club
was £5m (down 8%) and in League 2 it was £3.3m
(up 10%). The change in the mix of clubs in each
division mainly explains these changes. The wider
economic landscape has made operating a lower
division club more challenging over recent years.
• The net losses of both League 1 and League 2 clubs
in 2011/12 were at a similar level to the previous
season. The average net loss for a League 1 club
was £2.4m and in League 2 it was £0.3m.
• English football continues to make an extraordinary
contribution to life in the UK in terms of its diversity,
popularity, social contribution, economic impact,
investment in facilities and community activities,
and unique global reach.

Average club total wages and ratio to revenue
2011/12
Wages and transfers
• The total wage bill, across all employees, of Premier
League clubs in 2011/12 was £1,658m (up 4%),
ranging from £202m (Manchester City) down to
£35m (Swansea City).
• There were six Premier League clubs with total wages
above the average of £83m, all of which finished in
the top eight positions in the table.
13 Premier League clubs had total wages in a relatively
narrow range between £35m and £64m.
• The wages/revenue ratio is a well-established key
performance indicator for football clubs. In 2011/12,
of the 28 clubs from the top two divisions with
a wages/revenue ratio greater than 70% only four
reported an operating profit.
• The average wages/revenue ratio for Premier League
remained at 70%, ranging from 49% (Norwich City)
to 94% (Aston Villa). It has been between 67% and
70% for four seasons in a row.
• Premier League clubs’ total wages are projected
to have been c.£1,800m for the 2012/13 season.
Given the upcoming step-change in 2013/14, the key
question is how much of the extra £600m revenue
will be spent on wages?
£18m£83m
Premier League
Championship
+11%+4%
89%70%

• If historic trends are repeated, increasing wages will
absorb about 80% (£480m) of the extra revenue.
However, if the clubs exhibit unprecedented restraint
helped by new cost control constraints and only
40% (£240m) of the extra revenue is absorbed by
increasing wages, then the wages/revenue ratio will
fall to 66% and operating profits will climb to a record
level of around £380m. Time will tell.
• The total wages of Championship clubs in 2011/12
were £422m (up 11%), in part due to the mix of clubs.
Within this aggregate amount, wage costs ranged
from £42m (for West Ham United, promoted through
the play-offs) to £6m (Peterborough United,
finishing 18th).
• The average wages/revenue ratio for Championship
clubs was 89% and has been between 87% and 90%
for five seasons. 17 Championship clubs reported a
wages/revenue ratio above 70%, including nine clubs
for which the ratio exceeded 100%.
So, these nine clubs spent more on wages than they
earned in revenue in the season, and in addition had
to fund their other operating costs.
• This imbalance between wages and revenue at some
clubs, deteriorating losses and concerning debt levels
have contributed towards the introduction of Financial
Fair Play Rules for Championship clubs, for which the
sanctioning regime will start to apply against clubs
whose 2013/14 results are in breach.
Average club total wages and ratio to revenue
2011/12
£4.6m 93%
League 1
£2.3m 70%League 2

Total player costs for clubs in the top four divisions
2011/12
• Cost control regulations for League 2 clubs since
2004 have helped restrain wage costs and limit
clubs’ losses. Similar requirements have now been
introduced for League 1 clubs and should help
improve the wages/revenue ratio from the
2012/13 season.
• In 2011/12 Premier League clubs’ total player transfer
spend was down around one-quarter to £0.6 billion
(with net transfer costs of £0.2 billion), in particular
due to lower spend on importing players from
overseas clubs.
£1.6 billionPlayer wage costs
£0.2 billionNet transfer costs

Stadium development and operations
• In 2011/12 the capital expenditure of clubs in the top
four divisions was £188m (up 13%). 25 clubs each
invested more than £1m in the season.
• English clubs have maintained strong investment in
facilities for the longer term benefit of the game, with
more than £150m invested in facilities in every one of
the 15 seasons since 1997/98.
• Capital investment over the 20 seasons to 2011/12
has included the building of 29 new club stadia
across the four divisions with a combined capacity
(when opened) of c.670,000, numerous stadia
redevelopments, and investment in player
training facilities.
• Capital investment by Premier League clubs accounted
for about three quarters of the total in 2011/12,
led by Tottenham Hotspur (£48m – primarily their
proposed new stadium project and training centre)
and Manchester City (£30m – primarily for training
and community facilities).
• Brighton Hove Albion opened their new stadium in
2011/12 season. The cumulative c.£100m expenditure
in the preceding three years, largely funded by the
club’s owner, is one of the largest single investments
by any club in the last 20 years.
Number of new stadia opened
92/93-96/97
224,000
97/98-01/02
02/03-06/07
07/08-11/12
80,000
239,000
123,000
Combined capacity of new
stadia (when opened)

• In 2011/12 Premier League clubs’ total matchday
revenue (largely from gate receipts) was £547m
(down 1%). Arsenal, Chelsea and Manchester United
together accounted for about half of matchday
revenue across the Premier League. Average matchday
revenue per attendee was £34, ranging from
£66 (Chelsea) to £10 (Wigan Athletic). During tougher
economic times this average has increased only
£1.50 since the 2007/08 season, representing a
decrease in real terms.
35,906
Utilisation
95%
17,496
Utilisation
65%
Prem
ierLeague
Cham
pionship
Match attendances 2012/13
£3.3 billion
Capital investment
by English clubs –
20 year total

• Clubs continue to innovate with their ticket pricing,
packaging and marketing initiatives; conscious of the
price sensitivity of their fans and a desire to attract
and retain the next generation. Increasingly, many
clubs also look towards additional ways of engaging
with their fanbase and improving the matchday
experience, such as the creation of more social
environments for fans to congregate at the stadium
and use of in-stadia technology.
• The average attendance for Premier League clubs in
2012/13 increased 4% to 35,906 (2011/12: 34,646),
largely due to the change in mix of clubs. Average
stadia capacity utilisation of 95% was the highest
level recorded in Premier League history and the
16th consecutive season above 90%, illustrating the
particular attraction of Premier League football and
the success of the clubs’ efforts to maintain and build
attendances.
• Across the three divisions of the Football League,
in 2012/13 aggregate attendances (of 15.6m, down
4%) remained above 15m for the 10th consecutive
season, again demonstrating the strength and passion
of spectator support lower down the English football
pyramid.
Club financing
• At summer 2012 Premier League net debt was
£2.4 billion, consistent with 2011. Eight clubs had
a reduction in net debt over the 2011/12 season.
• Premier League club’s net debt included £1.4 billion
of interest-free soft loans from owners (2011: £1.5
billion), of which around 90% related to three clubs:
Chelsea (£895m), Newcastle United (£267m) and
Queens Park Rangers (£93m). Excluding soft loans, the
clubs’ interest-bearing net debt of less than £1 billion
was equivalent to c.40% of annual revenues.

• Over recent years the trend of conversion of owner
debt to equity has helped improve the overall balance
sheet position; with such conversions in 2011/12 at
Fulham (£212m) and Wigan Athletic (£48m).
• In 2011/12 Premier League clubs’ net interest charges
totalled £79m (down 23%).
• Since the middle part of the last decade, during a
time when the market for external financing has
diminished, Premier League clubs have attracted
additional funding largely from owners to help
cover their operating expenditure and investment
in playing talent and facilities. Premier League clubs
have benefitted from around £2 billion of additional
funding since 2006; an amount equivalent to over
15% of their revenues over the same period.
• In 2008 Premier League clubs’ net bank borrowings
stood at £1.1 billion. The equivalent figure for 2012
was a net cash surplus of £80m.
• Looking forward, the upcoming step-change in
Premier League clubs’ revenues from 2013/14 and the
introduction of cost control and funding measures – in
both the Premier League and UEFA competitions –
should contribute towards an overall further reduction
in net debt relative to revenues.
Premier League net debt 2012
£2.4billion

• At summer 2012, the carrying value of player
registrations of Premier League clubs was £1.1 billion
(2011: £1.2 billion), of which over 70% related to
six clubs; being the same six clubs with the highest
revenues and wage costs.
• At summer 2012 Championship clubs’ net debt
reached a record level of £0.9 billion (2011:
£0.7 billion). The net debt position worsened for
around two-thirds of the Championship clubs.
• Below the top two divisions, managing a club’s
financial position is a challenge from season-to-
season. Legacy debt issues and the risks taken by
some owners will, without correction, inevitably lead
to sporadic insolvency cases in the upcoming seasons.
• Concern about the level and sustainability of clubs’
debt was a key driver for the Football League and its
member clubs to introduce their new Financial Fair
Play Rules. Effective application should help the clubs
improve their financial results and position in future.
Championship net
debt 2012
£0.9 billion

With the growth of English football
into a globally renowned sports
business, it is important to remember
that the founding objective of
many clubs was to be an agent of
positive social change in their local
communities.
While the issues affecting these communities have
changed over time, it is good to see that despite their
development into commercial businesses, football clubs
can still champion important social causes within and
beyond their communities.
Examples of this abound within football. The Premier
League Creating Chances programme has continued to
deliver a wide range of initiatives across a number of
community issues, with 843 active club projects across
English football in 2012.
Similarly, individual clubs continue to champion causes
specific to their local communities such as Everton in the
Community’s “Safe Hands” programme, helping integrate
local young offenders back into society. The success of
delivering against non-commercial objectives is partly
dependent on the reach that clubs and leagues can have,
which makes The Football League a particularly interesting
vehicle through which to promote such causes.
Prostate Cancer UK and
The Football League partnership
Alexander Thorpe, Consultant

The Football League’s 72 clubs represent an estimated
aggregate active fan base of over 14m people and
provide potential partners with significant matchday
exposure, with the 2012/13 season seeing on average,
over 300,000 people attending Football League matches
each weekend. Every season since 2009/10, The Football
League has had an Official Charity Partnership, chosen
by fans, which allows the selected charity to utilise The
Football League website as well as direct contact with
clubs in order to promote awareness of their cause.
The partnership between Prostate Cancer UK and The
Football League for the 2012/13 season represents a close
synergy between the target demographic of the charity
and the profile of Football League fan. Prostate cancer is
the most common cancer amongst men in the UK, with
one in eight men set to develop the disease at some point
in their lifetime, with it mainly affecting men over the age
of 50. Approximately 80% of Football League fans are
men, and c.40% of supporters are over 45 years old.
The 2012/13 season saw activity at over 50 Football
League grounds, with a volunteering presence, as well
as matchday programme and perimeter advertising,
resulting in c.500,000 people being exposed to the
charity’s message. Prostate Cancer UK’s online strategy
also featured an award winning football related campaign
via social media that saw the charity engage with
bloggers and journalists.

This helped Prostate Cancer UK’s football website account
for a quarter of the charity’s total website traffic as well
as c.4m people exposed to tweets related to Prostate
Cancer UK and football.
The partnership has already delivered significant benefits
for Prostate Cancer UK, contributing to an overall
c.50% increase in brand awareness for the charity over
the 2012/13 season. The partnership also attracted
c.1,000 volunteers to assist with the campaign during
the season and continues to raise funding for research.
One of the charity’s aims is to continue to use the
medium of football to raise awareness amongst
previously hard to reach communities. It will be
interesting to see how the charity builds on an
exciting campaign in 2012/13 over the coming years.
While using football in promoting social causes is not
new, its relationship and relevance for Prostate Cancer UK
is fascinating. The partnership has represented a practical
means of communicating with at risk men.
Where conventional methods may have failed, by using
Football League clubs as their beacons in communities
up and down the country, Prostate Cancer UK has been
able to deliver real benefits in the fight against the most
common form of cancer amongst male football fans.
Half of all profits from sales of this report will be
donated to Prostate Cancer UK.
Prostate Cancer UK is one of three Deloitte National
Charity Partners for 2013-16.
Prostate Cancer UK is a registered charity in England and
Wales (1005541) and in Scotland (SC039332). Registered
company 2653887.

Basis of preparation
Our review of the financial results and financial position
of English football clubs, and comparisons between them,
has been based on figures extracted from the latest
available company or group statutory financial statements
in respect of each club – which were either sent to us by
the clubs or obtained from Companies House. In general,
if available to us, the figures are extracted from the annual
financial statements of the legal entity registered in the
United Kingdom which is at, or closest to, the ‘top’ of the
ownership structure in respect of each club.
Our review of the financial results and financial position
of clubs in various European leagues, and comparisons
between them, has been based on figures extracted
from the company or group financial statements or from
information provided to us by national associations/
leagues.
Each club’s financial information has been prepared on
the basis of national accounting practices or International
Financial Reporting Standards (“IFRS”).
The financial results of some clubs have changed, or
may in the future change, due to the change in basis of
accounting practice. In some cases these changes may
be significant.
In relation to estimates and projections, actual results
are likely to be different from those projected because
events and circumstances frequently do not occur as
expected, and those differences may be material. Deloitte
can give no assurance as to whether, or how closely,
the actual results ultimately achieved will correspond to
those projected and no reliance should be placed on such
projections.
Availability of financial information regarding
football clubs
For the 2011/12 season there were two clubs in the
top two divisions of English football for which financial
statements were not available to us at June 2013. There
were also several League 1 and League 2 clubs for which
financial statements were not available to us at June 2013.
Basis of preparation

Divisional totals have been ‘grossed up’ to represent the
full divisional total for comparison purposes (from year
to year or between divisions). Where necessary, the
aggregate divisional totals for European leagues have
been ‘grossed up’ in a similar manner.
Limitations of published information
In some cases we have made adjustments to a club’s
figures to enable, in our view, a more meaningful
comparison of the football business on a club by club
basis and over time. For example, where information was
available to us, significant non-football activities or capital
transactions have been excluded from revenue.
Some differences between clubs, or over time, are due
to different commercial arrangements and how the
transactions are recorded in the financial statements;
or due to different ways in which accounting practice is
applied such that the same type of transaction might be
recorded in different ways.
The publication contains a variety of information derived
from publicly available or other direct sources, other
than financial statements. We have not performed
any verification work or audited any of the financial
information contained in the financial statements or other
sources in respect of each club for the purpose of this
publication.
The aggregated results shown in this publication for the
clubs in the top four divisions of English football are not a
true consolidation exercise because transactions between
clubs, such as the transfer of player registrations, are
not eliminated.

Wage costs
The published financial statements of clubs rarely split
wage costs between playing staff and other staff.
Therefore, the great majority of references in this
publication to wages relate to the total wage costs for
a club/division, including playing and non-playing staff.
Exchange rates
For the purpose of our international analysis and
comparisons we have converted all figures into euros
using the closing exchange rate at 30 June 2012
(£1 = €1.236).

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member
firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure
of DTTL and its member firms.
Deloitte LLP is the United Kingdom member firm of DTTL.
This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set
out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from
acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this
publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining
from action as a result of any material in this publication.
© 2013 Deloitte LLP. All rights reserved.
Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at
2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.
Designed and produced by The Creative Studio at Deloitte, London. 27285A
Contacts
Sports Business Group at Deloitte
Dan Jones, Paul Rawnsley, Alan Switzer
Telephone: +44 (0)161 455 8787
E-mail: sportsteamuk@deloitte.co.uk
www.deloitte.co.uk/sportsbusinessgroup

Annual Review of Football Finance 2013

More Related Content

What's hot (20)

Viewers also liked (16)

Similar to Annual Review of Football Finance 2013 (20)

More from Deloitte UK (20)

Recently uploaded (20)

Annual Review of Football Finance 2013