Premier League clubs record pre-tax losses despite record revenues - report
Premier League clubs achieved record revenues for the 2015-16 season but posted overall pre-tax losses, figures released by Deloitte have shown.
Revenues increased to 3.6 billion, up 0.2bn from the previous season, with Manchester United and Manchester City responsible for more than half of that rise.
United's revenue grew to 515 million, which saw them top the Deloitte Football Money League as the world's highest revenue-generating club for the first time since 2003-04.
The combined operating profits of the 20 clubs remained stable at 0.5bn, with wage costs increasing by 12 percent to 2.3bn.
But after two consecutive seasons of pre-tax profits, the clubs were back in the red with pre-tax losses of 110million.
Dan Jones, partner and head of the Sports Business Group at Deloitte, said: "Our analysis reveals a return to pre-tax losses... however, it is worth noting that this is due to a small number of one-off 'exceptional' costs.
"We fully expect that the Premier League's new three-year broadcast rights deal will see a return to record levels of profitability in the 2016-17 season."
Sky and BT paid a record 5.136bn for the latest round of TV rights -- 71 percent higher than the previous deal.
Adam Bull, senior consultant in the Sports Business Group at Deloitte, added: "We have already seen, to some extent, the impact of the current broadcast rights deal, with clubs' combined transfer expenditure over the course of the 2016-17 season reaching almost 1.4bn -- eclipsing the previous record set in 2015-16 by one-third and far exceeding any other league in world football."