By Tom Morgan

Copyright independent

Operational outgoings are up 30 per cent over five years, despite worries TV rights values are plateauing.

Top-tier finances are the envy of the sporting world, but, even aside from legal battles, spending on central staffing and other costs is outpacing revenue growth of four per cent.

The Premier League is limited in what it publishes in its accounts, but up-to-date particulars shared with clubs show:

Legal costs soared by 325 per cent from £11.3m in 2022/23 to £48.1m in 2023/24 before dipping slightly to £44.6m in 2024/25Amid political pressures brought about by the incoming regulator, there was a 29 per cent uplift in spending on policy, with costs rising by £4.3m over five yearsIncreases of around 15 per cent were also in the majority of other operational departments, including executive officeOne of three club executives known to have private misgivings now claims growing costs “makes it harder to comply with PSR”

Criticism is met with dismay by some quarters, who point out the current budget was voted through by the vast majority of its members. None of the 20 clubs, which ultimately sign off spending by the league, challenged rising costs at recent shareholder meetings. Nor was direct criticism aired when the breakdown of costs was discussed at a subsequent sub-committee meeting of club chief financial officers last week.

Other club sources insist, however, that misgivings around soaring costs have previously been made clear and concern is now increasing.

One club executive said in a statement: “The rate at which the league’s central costs are rising is a real cause for concern for all of us. Their executives seem increasingly happy to spend the club’s money, which is raising questions about their governance. Every penny more the league spends on its ever-increasing bureaucracy comes straight off clubs’ top line revenue and makes it harder to comply with PSR.”

Another adds: “There seems to be a blinkered obsession with the league organisation in its own right at the expense of the much-needed drive to grow club revenues through the growth of the league. We are in danger of forgetting what separates us from other leagues around the world.”

The critics calculate they are missing out on around £1m-a-year each as a result of an increase in central spending. The league’s position, however, is understood to be that it has exceeded club expectations on the money it distributes. An average of £28m per annum of additional payments were sent to clubs “beyond budget” over the last five seasons.

Those supportive of the league’s strategy say an increase in central investment is necessary to sustain long-term growth targets.

Soaring legal costs were also an inevitability amid cases brought against Manchester City, Nottingham Forest and Everton.

However, legal battles are not the sole cause for an overall surge in spending in recent years. Even after deducting the cost of those cases, central outgoings on staff and admin matters have gone up 18 per cent over five years to £96.8m in 2024-25. Figures close to the Premier League’s strategy point out overspend has only been in “very low percentages”, with “significant savings” delivered in other years.

All budgets are reviewed and approved by the Audit and Finance Committee, which includes two club representatives before being approved by shareholders.

Much of the increase in non-legal spending is said to be owing to “significant work” on the league’s future growth strategy, including attempts to expand in overseas markets.

An increase in spending on policy, meanwhile, is only partly related to pressure brought about the incoming Independent Football Regulator. Sources say the figures also cover an uplift in spending on safety and stewarding initiatives to improve fan experience at grounds

Various clubs point out legal costs are now likely to reduce in the coming years, with the legal battle with City over associated-party transaction rules resolved and a conclusion in the 130 case against them also nearing.

Premier League is a £4bn revenue a year business

Nevertheless, the league is still said to be budgeting for its 2025-26 non-legal operating costs to grow by another 13 per cent. Revenues are budgeted to increase by £311m as the league commences a new commercial cycle, however.

Supporters of the Premier League, now a £4bn revenue a year business, point out that spending is “carried out alongside the clubs and has received constant club approval along the way”.

However, Kieran Maguire, a lecturer in football finance at Liverpool University, says an increase in staffing central costs by the league can be traced back a decade.

“The Premier League deserves a lot of credit for the way it’s managed to increase revenues over the last decade,” he added. “That is now starting to plateau, and what we are seeing is a significant rise in costs.”

The league’s total staff of 364 remains significantly less than La Liga’s 620 and the MLS with 450. However, published accounts show how quickly the league’s central team has grown over a decade, not least to help staff a host of overseas offices opened up to help fuel the league’s growth. For the year ending July 2024, staffing cost £43m, up from £36.5m, on 302 members of staff.

Published records, Maguire adds, show “Premier League staffing itself has gone up from just over 100 to now over 300 over the last decade”. The average salary at the league appears to be well over £100,000.

“If you add an extra 200 staff at that level, it means that there’s significant operating costs to be absorbed,” he said.

“Every pound incurred by the Premier League is one pound less that goes into the pot that’s divided between clubs. So operating costs are now 5.5 per cent of Premier League revenues compared to 2.2 per cent a decade ago. That will be concerning some clubs who perhaps have historically turned a blind eye because they are now more concerned about trying to maximize their revenues from the Premier League. It will also add to the Premier League’s opposition to the independent regulator and settling a distribution deal with the EFL.”

Inflation is at six per cent CAGR during the period of the finances in question. Central costs come directly out of club revenues as part of the Premier League’s shareholder arrangement with clubs.

The increase in spending remains a fraction of overall income for the world’s richest domestic competition. The Premier League’s UK rights deal is worth £6.7bn from 2025-29, the envy of all rival leagues. In the 2023/24 season alone, accounts show clubs generated £6.3bn in revenue, a four per cent increase on the previous season. But there are concerns that increases in TV revenues have hit a ceiling.

Figures supportive of Premier League spending say rising expenditure on legal costs has been a necessity in upholding the rule book and integrity of the competition. The cost of lawyers working for accused clubs, including City who deny all charges against them, will be significantly more than the league’s equivalent spending in recent years, they add.