The Championship has resumed its path of steady growth, according to Deloitte’s Football Finance report. It has achieved annual revenue growth of almost 12 per cent, while Leagues 1 and 2 have grown at around 10 per cent. ‘In almost any other industry this would be lauded as outstanding,’ the report notes. Championship revenues increased by about 2 per cent to £336m in 2007/08. Total revenues of the Football League clubs exceeded £500m for the first time.
The Championship has resumed its path of steady growth, according to Deloitte’s Football Finance report. It has achieved annual revenue growth of almost 12 per cent, while Leagues 1 and 2 have grown at around 10 per cent. ‘In almost any other industry this would be lauded as outstanding,’ the report notes. Championship revenues increased by about 2 per cent to £336m in 2007/08. Total revenues of the Football League clubs exceeded £500m for the first time. Operating losses for Championship increased from £75m to a record £102m despite increased parachute payments to relegated clubs, and the first solidarity payment to the rest of the Football League. The new improved Football League broadcasting deal which starts in 2009/10 provides a much needed opportunity to address the losses in the Championship. Championship clubs’ total wage costs increased by £32m (12 per cent) in 2007/08, the second consecutive year of double digit growth. The increase in wages over the last two seasons has been over three times greater than the increase in revenue resulting in the wags/revenue ratio increasing to 87 per cent (2006/07 79 per cent; 2005/06, 72 per cent).
The Championship increased attendances by 5 per cent and is now the third best attended league in Europe. Net debt in respect of the 22 Championship clubs who reported results at the end of 2007/08 was £326m (2007: £298m in respect of 20 clubs). The report notes, ‘In general, a Championship club can only hope to significantly reduce its net debt in the short/medium term via either promotion or the Premier League or an injection of equity funding from its owner. Below the top two divisions, managing a club’s financial position remains a challenge from one season to the next. Legacy debt issues and the risks taken by some boards of directors will, without correction, inevitably lead to a continuing flow of insolvency cases in the seasons to come.’