Bundesliga

These Clubs are Raking In the Money for Widely Watched and Most Wagered on Sport!

Many English Premier League clubs have shown increased profitability for the period 2013-14 and the total revenues of the league were £3.26 billion, higher than that of the Italian and Spanish top divisions taken together.

Germany’s Bundesliga made around £2 billion for the same period, making it a far second to the English league in earnings.

The total revenues earned by England’s top division clubs increased 29% over the previous year.

In addition, they also made a combined pre-tax profit of £187 million. The last time the league made a profit was way back in 1999.

Operating profits of the league also jumped a massive 649% from £532 million to £614 million.

It goes without saying that not every club in the league was able to contribute equally to this bonanza.

While a big club like Manchester United had total revenues of £433 million the previous year, a smaller one like Cardiff City was able to pull in only £83 million.

Even so, all but one of the twenty clubs in the league made an operating profit, and this is indeed something to commend.

There are two significant factors contributing to this inflow of cash into the league. One of them is increased revenues from broadcast rights, which have been inked for a period up to 2019.

These broadcast deals are very lucrative and they are much higher than the ones previously in place.

The other reason for the new found profitability is that clubs have had to follow Financial Fair Play rules put in place by the UEFA.

These rules cover many areas include cost cutting and clubs that do not comply with them face relegation from this league.

For instance, one result of the FFP rules was that the ratio of wages to revenues of the overall league went from a very high 71% to a fairly reasonable 58%.

The UEFA expects teams to keep this ratio below 60% in order to stay profitable. The Premier League itself has enforced Short Term Cost Control measures for the periods 2014-15 and 2015-16.

Incidentally, not a single new stadium was opened last season, the first time in almost a decade.

As a matter of fact, this issue has led to a lot of heartburn among club owners because some of them were unable to keep costs down satisfactorily.

A few club owners have even taken UEFA to court regarding the rules in question because they involve very severe fines and other punishments.

However, UEFA itself is planning to ease these restrictions slightly, going by statements released by its office bearers recently.

There is no doubt at all that the new era of profitability will benefit the league tremendously.

In fact, the opinion of financial experts is that this might trigger interest from investors all over the world since investing here has no longer become a risky proposition.

Over at the Championship, the story is entirely different since they actually spend more than they earn.

They are eager to join the Premier League, but they follow questionable practices that jeopardise their very existence.

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