For the first time since 1999, Premier League clubs have recorded a second consecutive year of aggregate pre-tax profits, generating approximately £120m in 2014/15, according to Deloitte, the business advisory firm.
This is the second highest-ever aggregate pre-tax profit for Premier League clubs, and follows last year’s record-breaking profit of £190m for the 2013/14 season.
In addition, in 2014/15 Premier League clubs recorded combined operating profits (which excludes player trading, net interest charges and the amortisation of player contracts) of more than half a billion pounds. Despite being lower than the operating profit achieved in the first year of the current broadcast rights deals in 2013/14, this is nevertheless the second highest ever.
Of the 20 clubs in the Premier League, 17 recorded an operating profit in 2014/15.
Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “The perennial problem for Premier League clubs was to convert impressive revenue growth into profitability. We saw this problem solved with record breaking results last year. The new challenge was to sustain this financial success, and the Premier League clubs have accomplished this in impressive style in the latest results.
“With further significant revenue increases already guaranteed for the next broadcast cycle, starting in 2016/17, there is every reason to be confident of the Premier League clubs’ profitability being here to stay.”
Michael Cunnah, former CEO of Aston Villa and current iSportconnect Chairman believes revenue streams and FFP are a huge reason for the continued financial success
He said: "The combination of increased revenues along with the cost restraints brought about by financial fair play is now allowing clubs to become profitable i.e. they are now avoiding the "prune juice effect" as Alan Sugar put it, as not all increases in revenue are being handed straight to the players."
"There is confidence that this situation will continue as evidenced by new investors recently Crystal Palace and Everton."
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