The European football market showed an impressive recovery during the 2022-23 season, rising 16 per cent to hit a record high of 35.3 billion euros ($37.86 billion) in total revenue, as COVID-19 restrictions were unwound, allowing the return of a capacity crowd to the stadia, while the 2022 FIFA World Cup provided further impetus to fan interest, Deloitte said in its Annual Review of Football Finance published on Tuesday. 

The growth was mainly due to the big five European leagues, which generated 19.6 billion euros in revenue, an increase of 14 per cent. This good form on the pitch translated to an aggregate operating profit of 500 million euros, significant against the backdrop that it represented the first time these five leagues had recorded a profit since the 2018-19 season and before the financial impact of the pandemic. 

Tim Bridge, head of the Sports Business Group at Deloitte, noted that the impact of the 2022 FIFA World Cup, combined with the final removal of COVID-19 restrictions, was stark, and the passion of supporters engaging with football has driven considerable growth in the European football market in 2022/23. 

Premier League clubs also shattered the six billion pounds barrier of revenue for the first time, driven by an 11 per cent growth, while on average, revenue surpassed 300 million pounds to underline the league’s financial muscle. 

One of the positive trends identified within the report was that the average wages/revenue ratio fell across all leagues, indicating that the increase in aggregate revenue outpaced the rise in wage costs. This financial prudence reflects a much-needed healthier economic environment for clubs. 

Meanwhile, clubs in England’s second-tier Championship increased their revenues by 10 per cent to 749 million pounds as they overshot wage costs of 706 million pounds for the first time since the 2016-17 campaign. 

However, no Championship club generated an operating profit (before player trading), with the league registering operating losses of 316 million pounds. 

The Championship clubs continue to be driven to significant financial outlays in pursuit of promotion to the Premier League. Promotion can lead to a financial windfall of at least 140 million pounds, increasing to more than 300 million pounds if they avoid relegation. 

“The Football League may have seen an uptick in revenues in 2022-23, but clubs across the EFL are still battling to manage cash requirements,” Bridge added. 

“Many clubs are propped up by owner funding as they aspire to promotion, but exiting the league at the wrong end exposes a club to instability.” 

“This makes a strategy for long-term stability critical, underpinned by appropriate support provided by the governing bodies.” 

The lower leagues- League One and League Two also saw revenue increases during the 2022-23 campaign. A record aggregate of 19.8 million fans came through the doors of these leagues, which is the highest aggregate that has been recorded for the past 69 seasons.