Premier League the world’s most watched European football league has been continued astonishing transfer market progress in last 2 seasons. No doubt the fans are excited and have gone crazy with the latest transfer window altering the squad tables, but the part of thinking is expense of so much money has pushed EPL towards a huge bankruptcy. Want to know how?
The report claims the long-term implications of those losses could be a breakaway by the league’s biggest clubs and the creation of a European Super League. Titled “We’re so Rich it’s Unbelievable”, the document is based on the accounts of all Premier League clubs between 2008/09 and 2015/16, the last season for which data is available.
Based on the principle of “economic profit” – the difference between revenue and costs, including the so-called “opportunity of cost” of not doing something else with your money – the report claims Premier League clubs lost £2 billion in eight years.
One of the report’s co-authors, Roger Bell, said: “Financially, football is failing. Britain’s biggest football clubs are spending much, much more than they are making. The Premier League, and its executive chairman Richard Scudamore, should be very worried.Our analysis shows clubs are losing a record £876,700 every single day. Despite TV bringing in huge amounts of cash every year, it does not meet the many millions spent on players’ wages. Clubs needs to face reality about their dire financial situation before they can’t afford to pay the bills and some go to the wall.”
Purcell said only five clubs made an economic profit in 2015/16, the worst performance since 2012/13, with Chelsea and Manchester City accounting for more than half of the league’s total losses over the report’s eight-year period.
The report’s findings, however, will raise eyebrows among many fans, as it ranks relegated Norwich City ahead of champions Leicester City in its “Profitability Index” for 2015/16 and notes that Blackpool managed five straight years in profit as they plummeted down the league pyramid.
The report does, though, commend Burnley for their sustainable approach, point out that Leicester managed the rare feat of making a profit while winning the league and say Tottenham Hotspur are the most profitable club since 2008.
Recent high bids for Pogba and Lukaku has added salt to the burn as well as led to more drain of money. Fans may be well excited but is it really good for the league? Or the clubs? On the other hand La liga, Bundesliga, Ligue 1 have not spent so much money in last eight years according to record. Well this can be a tough situations for all EPL lovers as in the near future, expense being the same, the league may suffer uncertain relegation.
Bell added: “The EPL was formed to gain increased monies from broadcasting. There is nothing to stop the top six or seven clubs breaking away and joining forces with other top clubs from Italy, Spain, Germany etc forming a European Super League and negotiating a Europe-wide or even global TV deal for many, many billions of pounds.” – PA SPORT.
So, lets just see what the managers do….
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