Premier League profitability analysis: How a decade of ostensibly endless wealth has resulted in a loss
6 May 2020
The Premier League clubs would be wise to take the time provided by the current lockdown to rethink their business models, or at least evaluate their expense accounts.
With the 2018/19 annual reports now released by almost all the Premier League clubs, an era has come to an end - one in which ever-increasing turnover has nonetheless led to negative profits on aggregate.
We have taken a look at the major mechanisms at play, and how the clubs are suited to the current crisis.
The current coronavirus pandemic has put football clubs in an unfortunate position, with key revenue-generating activities on hold. Across all of Europe, clubs have accordingly addressed their concerns, declaring up to £100 million in lost income from the lockdown, which directly affects profitability.
That said, the recently published annual accounts for 2018/19 reveal that the Premier League clubs' business models were already leading them down an unsustainable path - long before the prevailing pandemic.
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