Premier League clubs still struggle to make a profit.
Premier League clubs posted record revenues of £3.6bn in 2015-16, but still struggled to make a profit.
The 20 top-flight English teams made a pre-tax loss of £110m, after two consecutive seasons in the black, according to figures from Deloitte.
Clubs saw increased player expenditure, operating costs and one-off charges.
The two Manchester clubs’ revenues increased by a total of £160m – roughly half of the total revenue growth recorded by the Premier League clubs.
“The 2015-16 season saw Premier League clubs grow revenues by almost 10% … with the two Manchester clubs alone responsible for more than 50% of the increase,” said Dan Jones, head of the Sports Business Group at Deloitte.
Mr Jones said Manchester United’s participation in the 2015-16 Uefa Champions League, along with continued strong commercial revenue growth, resulted in a 30% increase in revenue to £515m, making them the world’s highest revenue-generating club.
“Increased distributions to clubs competing in Europe, under the new Uefa broadcast rights cycle – notably Manchester City, who reached the semi-finals of the Uefa Champions League – also contributed to Premier League clubs’ revenue growth,” Mr Jones added.
Premier League 2015-16 in numbers (2014-15 in brackets)
Revenues – £3.6bn (£3.4bn in 2014-15)
Wage costs – £2.3bn (£2bn)
Other operating costs – £900m (£800m)
Operating profit – £500m (£500m)
Net player trading – £400m (£300m)
Other costs – £200m (£100m)
18 clubs made an operating profit
12 clubs made a pre-tax profit
Source: Deloitte Analysis. Note: Figures subject to rounding
Chart showing Premier League operating profits since 1998
Looking at the combined losses, the first since the 2012-13 season, he said it was “worth noting that this is due to a small number of one-off ‘exceptional’ costs”.