English clubs top football’s money list

DUBLIN soccer club Shelbourne may be in line for a €1 million windfall after its success in the Champions League qualifier this week, but figures released yesterday show it has a long way to go before matching the other clubs in the shake-up for Europe’s top prize.

Financial consulting firm Deloitte’s annual review of soccer finance found European clubs and federations generated over €10.5 billion in income every season through ticket sales, sponsorship, merchandising and TV rights.

Deloitte said the combined income of the 20 clubs in England’s top flight Premiership stood at stg£1.2bn (€1.8bn) last year.

Europe’s five biggest soccer markets - England, Italy, Germany, Spain and France - accounted for half the market, bringing in €5.9bn, 7% more than in the previous season.

English clubs had the best financial records, with the average Premiership club income standing at €93m.

Italian clubs were runners-up with an average income of €68m.

Deloitte said there was evidence of a slowdown in wage inflation across the continent. Players’ salaries grew by 8% year-on-year in England last year, after registering an average increase of 25% each year in the previous decade.

But wages are still a significant cost, at an average of €57m per club, or more than half total income.

Clubs in Italy and Germany showed greater discipline by cutting wage bills last year, after a season that saw bankruptcies many high-profile clubs, such as Italy’s Napoli, a former heavyweight on the European stage that employed Argentinian legend Diego Maradona at the height of his career.

Deloitte partner Dan Jones said the review showed the finances of European football were turning a corner.

“Revenues continue to grow and greater wage restraint and a general slowdown in transfer spending are bringing an improvement in the bottom line and club cash-flows,” he said.

Transfer fees in England tumbled 50% to €300m last year. Observers said this represented a return to normality after an explosion in transfer fees that saw players change hands in multi-million euro deals.

The collapse of digital TV station ITV Digital, which resulted in many clubs missing out on expected payments for TV rights, was seen as a significant factor in forcing clubs to curb their spending.