This financial growth has been remarkable, signifying a transformative period within the landscape of football across the globe. This surprising conclusion is drawn in the most recent Deloitte Money League report. Arsenal, Tottenham Hotspur, Chelsea, Aston Villa, Newcastle United and West Ham United have all recently announced record revenue numbers. Their continued success has raised the average income of the top 20 clubs to an incredible level.
Arsenal leads the way among English clubs with an impressive revenue of 822 million euros (£690 million), securing the sixth position in the global rankings. Looming just behind them are Tottenham Hotspur, who posted revenues of 673 million euros (£565 million), putting them ninth in the world. Fellow English club Chelsea, the other member of the so-called “big six,” came close behind, with 584 million euros (£491 million) in revenue, ranking it tenth overall.
Aston Villa, with 450 million euros (£378 million) of revenues, is currently fourteenth in the world. Meanwhile, Newcastle United and West Ham United reported revenues of 400 million euros (£335 million) and 276 million euros (£232 million) respectively, placing them seventeenth and twentieth in the league table. Publicly owned Liverpool, with their very solid financial base, are actually fifth in the Deloitte Money League.
In the 2016/2017 season, the report found that total revenue for those top 20 clubs skyrocketed by 11%. It hit 12.4 billion euros, a record, that’s £10.4 billion. Matchday revenue experienced a significant boost too, up 16% to 2.4 billion euros (£2bn). This momentous rise is a testament to the rebound and resurgence of clubs in the wake of the global pandemic.
Tim Bridge, director at Deloitte, noted a change in the way clubs earn their revenue and how the football industry is set to change because of it. He pointed out that in the past, clubs such as Manchester United were at the forefront of innovation in matchday revenue. Yet the reality today is much more complicated. The landscape has changed tremendously in just the last 10 years.
“If you went back 10 or 15 years, and you looked at Manchester United’s matchday revenue it was the industry leader,” – Tim Bridge.
Bridge was careful to caution that Manchester United’s position as the gold standard for commercial revenue is now out of date. He told them that on-pitch performance is absolutely essential. Clubs looking to the summit of financial tables need to lean into this.
“On-pitch performance remains a primary driver for clubs to progress to the upper echelons of the ranking, with many clubs benefiting from new and expanded European and international club tournaments,” – Tim Bridge.
While the rising cash flow for clubs has been great, it isn’t without obstacles. Bridge highlighted the importance of maintaining a balance between maximizing revenue and preserving the integrity of on-field performance as well as player welfare amidst increasing fixture schedules.
“While this presents substantial financial opportunity, a balance must be struck between revenue optimisation and protecting both the value of the on-field product and player welfare amidst ever-increasing fixture schedules,” – Tim Bridge.
Additionally, Bridge observed how clubs are getting more proactive about owning their own ability to generate revenue. Increasingly unsustainable business models are fueling this change. They direct attention to increased utilization of stadiums and surrounding areas on non-match days, the increase in sponsorship revenues and the retail sales uplift.
The Deloitte Money League report underscores a transformative period for English football clubs as they strive to enhance their financial standings. The reported revenues reflect not only successful matchday operations but strategic commercial initiatives that many clubs have adopted in recent years.