Is the Premier League still Top Dog?

Something About England

There have been plenty of voices raised in recent months about potential threats to the Premier League’s dominance, mainly in the shape of an independent regulator and the restrictions on spending imposed on clubs by financial regulations.

First out of the blocks was Richard Masters, who laid it on pretty thick, when he was given a platform in The Times:

“As chief executive of the Premier League, my overriding concern is that the (football governance) bill would reduce our competitiveness and weaken the incredible appeal of the English game.

“It is a risk that regulation will undermine the Premier League’s global success, thereby wounding the goose that provides English football’s golden egg. It is a risk to regulate an industry that has worked so hard to lead the world, especially when none of its competitors are subject to the same regulation.

“Those competitors are relishing the prospect of the Premier League being uniquely constrained. Empires rise and fall — and while I am confident about the league’s immediate future, it would be a mistake to be complacent about our place as the world’s most popular league.”

Manchester City chairman Khaldoon al-Mubarak said much the same thing in reference to Premier League rules, “You won’t see the same level of competition as we’ve seen in the last years, because of the levels of regulations that have come into place over the last 12 months.”

He added, “The Premier League got to where it is today by being the most competitive league. So I hope there is a bit more sensibility in regulating. Always a balanced approach is good from all the leagues, be it in England or the rest of Europe.”

Sir Jim Ratcliffe, Manchester United’s minority owner, might be the new kid on the block, but he was singing from the same song sheet, “The Premier League is probably the most successful sporting league in the world, certainly the most successful football league in the world. And we have this expression in northern England: ‘If it ain’t broke, don’t fix it.’

“If you’re not careful, the Premier League is going to finish up spending more time in court than it is thinking about what’s good for the league. We have got the best league in the world, don’t ruin that league for heaven’s sake.”

Executives on the continent might have permitted themselves a wry smile at their concerns, as other leagues have long been concerned about the growing gulf between the Premier League and the rest of European football.

Their belief is that England’s Premier League has become the de facto Super League, thanks to its financial strength.

This dominance has once again been highlighted by the recent publication of Deloitte’s Annual Review of Football Finance, which provided some very useful comparisons with Europe’s major leagues.

Let’s take a deep dive into the results, looking at how the Premier League compares to its rivals. We will analyse the results for a number of metrics:

• Revenue (including broadcasting, match day and commercial)

• Wages

• Wage to turnover

• Operating profit/(loss)

• Profit/(loss) before tax

• Transfers (sourced from Transfermarkt)

Big Five Leagues

The analysis will focus on the Big Five leagues, namely the Premier League (England), La Liga (Spain), Bundesliga (Germany), Serie A (Italy) and Ligue 1 (France).

These leagues accounted for €19.6 bln revenue, which represented 56% of Europe’s €35.3 bln total in 2022/23. Their share has been higher in the past, e.g. 60% in 2019/20, but it’s still a very large slice of the European market.

Although the shared dropped by 1% compared to the previous season, this has increased in the last 10 years from 53% in 2013/14 (and 50% in 2012/13).

Revenue

Total revenue for the Big Five leagues surged to another new record of €19.6 bln in 2022/23. There has been good growth every season with the exception of those impacted by the COVID pandemic.

All of the Big Five leagues set new highs, as this was the first season since 2018/19 not impacted by COVID. The lifting of restrictions meant that the year-on-year increases in Germany and Italy were particularly high.

Nevertheless, the Premier League remains the clear market leader, generating around €7.0 bln revenue, which is over €3 bln more than its closest challenger, the Bundesliga €3.8 bln.

Put another way, England’s top flight is over half a billion more than La Liga €3.5 bln and Serie A €2.9 bln combined.

Growth over the previous season is a little misleading, as revenue in Germany and Italy was deflated in 2021/22, due to COVID restrictions still being partially in force.