Publications: BDO UNITED KINGDOM - The Annual Survey of Football Finance Directors 2016

The 2016 edition of BDO’s Annual Survey of Football Finance Directors Report provides a unique insight into financial performance in the sector and how clubs and investors are responding to changes in football finance which is compiled from the survey responses by finance directors from a cross section of English Premier League, Championship, Football Leagues One and Two and Scottish Premiership clubs.  

In this year’s report we examine how enhanced 2016-19 English Premier League (EPL) broadcasting rights are expected to impact on clubs finances and analyse a shift in investor behaviour.

Our findings have shown that TV rights, fierce competition within the Football League Championship (FLC) and Financial Fair Play (FFP) compliance in Football Leagues 1 and 2 have amplified the divergence between divisions but with some surprising results.

Key findings include:

• EPL clubs will have £8.3bn of broadcasting rights available for distribution over the next three seasons equating to between £100m and £150m per season
• 88% of EPL clubs expect to make a profit before and after player trading in 2016/17. However, in contrast, 92% of FLC clubs do not expect to make a profit after player trading.
• 83% of FLC respondents have a wages to turnover ratio of above 75%
• No Football League 1 (FL1) club considers that their finances are in need of attention. Only 27% of Football League 2 (FL2) clubs believe they might be but still expect to comply with FFP
• 100% of FL1 and FL2 clubs complied with FFP rules in 2015/16 and expect to do the same in the coming year
• 73% of FL2 clubs are aware of a formal or informal approach from potential investors in the last 12 months, compared to a third of clubs across all leagues
• Low broadcasting rights mean that Scottish Premier League clubs rely heavily on their loyal fan bases and player trading activity and are not attracting significant investor interest.
• 76% of all leagues cite growing their fan base as one of their top three priorities.

Download our report to find out more about the findings of our survey and our expert analysis which delves into financing the club; club revenue and profitability trends; player costs and transfers; and youth development.

We hope you enjoy reading it.