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October 27, 2020

Bundesliga tops Premier League as world’s most profitable

The Bundesliga overtook the Premiership as the world’s most profitable league in 2008/09 despite English soccer enjoying record revenues, according to a report released on Tuesday.

The Annual Review of Football Finance compiled by accountancy firm Deloitte said the sport had proved remarkably resilient to the economic downturn but faced a major challenge in keeping a lid on player wages and transfers. While Premier League clubs saw record revenues of 1,981 million pounds ($2.87 billion) in 2008/09, operating profits more than halved from 185 million pounds in 2007/08 to 79 million ($114.6 million) a year later.

The Bundesliga’s operating profits were put at 172 million euros ($205.4 million). The 49 million pounds rise in Premier League revenue was less than half the 132 million increase in wage costs which reached more than 1.3 billion.

Gross transfer spending by Premier League clubs also increased from 664 million pounds to a record 713 million. “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,” added Switzer.

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