Image: Premier League revenues have continued to grow

The combined revenue of the 20 English Premier League clubs increased by 12 per cent to a new record high of £2.3bn (US$3.6bn, EUR2.9bn) in the 2010-11 season.

The 21st Annual Review of Football Finance from Deloitte's Sports Business Group revealed that broadcast revenue growth had driven the latest increase in clubs' revenues.

Broadcast revenue rose 13 per cent to nearly £1.2bn (US$1.9bn, EUR1.5bn) in the first year of a new three-year cycle, with overseas broadcast deal values fuelling the growth.

Commercial revenue was up by 18 per cent - mainly among those with a larger global profile - and total matchday revenue also grew 4 per cent, although more than half reported a decline.

In addition to revenue growth, the Annual Review of Football Finance also found that more than 80 per cent of revenues went on wage costs - up 14 per cent in 2010-11.

The league's wages-to-revenue ratio hit a record 70 per cent and Adam Bull, a consultant at the Sports Business Group, said operating profits were down despite the revenue growth.

"Despite the increase in revenue generated by Premier League clubs, operating profits reduced by £16m (US$25m, EUR20m) to £68m (US$106m, EUR85m) in 2010-11 and combined pre-tax losses were £380m (US$592m, EUR476m)," said Bull.

"The challenge for clubs remains converting revenue growth into sustainable profits. This will become even more important for a number of clubs as financial results for 2011-12 will, for the first time, count towards their UEFA Financial Fair Play break-even calculation."

Details: www.deloitte.com

Image: Paolo Camera/flickr