Bundesliga knocks Premier League off top spot 08/06/2010 |
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The German Bundesliga has become the world’s most profitable football league in the world after usurping England’s Premier League.
Despite England’s first tier enjoying record revenues of £1,981 million ($2.87 billion) in 2008/09, operating profits dropped by over 50% from £185 million in 2007/08 to £79 million ($114.6 million) a year later.
In Germany, the Bundesliga boasted operating profits of 172 million euros ($205.4 million).
According to The Annual Review of Football Finance, which is compiled by Deloitte, the main challenge facing clubs is the restriction on player wages and transfers.
Deloitte found that the £49 million rise in Premier League revenue was less than 50% of the £132 million increase in spiralling wage costs which reached around £1.3 billion.
Furthermore, gross transfer spending in Enland soared from £664 million to a record £713 million.
In contrast to Premier League, the Bundesliga showed revenue growth of 137 million euros to 1,575 million, with a 16 % increase in commercial revenues.
"The record wages to revenue ratio of 67 percent in the Premier League in 2008/09 is a concern and we expect wages growth to outstrip revenue increases again in 2009/10," said Alan Switzer, director in Deloitte's Sports Business Group.
"This will further reduce operating profitability, a decline that cannot continue indefinitely.
"However clubs have the opportunity, via the revenue uplift from the new broadcast deals from 2010/11, to get wage levels down to a more sustainable share of revenue."
"It's not the first such opportunity. It remains to be seen whether they grasp it."
The new report shows that the European football market grew to its highest ever peak of £13.4 billion, with the Premier League the top earner.
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