The Premier League and its significant economic impact

The Premier League’s growth in both financial terms and in infrastructure helped support 103, 354 Full Time Equivalent jobs in the United Kingdom in 2013/14.

The English Premier League is indisputably the most attractive, the richest and the most marketable football league in the world. The astonishing finances of the league as a whole has left its closest competitor, Spain’s La Liga, behind quite some distance and in due time, will disappear beyond the horizon.

According to a report from the Ernst & Young (EY) Economic Impact Assessment, the League and its 20 member clubs contributed a gargantuan figure of £2.4bn to the UK Exchequer in the 2013/14 season.

The report also affirms that the League and clubs supported over 100,000 jobs while making a contribution of £3.4bn to the United Kingdom’s GDP.

“The success of the Premier League, which is grounded in the quality of the football competition, has created a ‘cycle of growth’. This should help ensure that the significant contribution to the UK economy and society will continue to increase in years ahead,” said EY’s Chief Economist Mark Gregory.

The Premier League recently announced brand new TV deals with Sky Sports and BT Sport for the 2016-17, 2017-18 and 2018-19 seasons that would see a 70% rise in British television rights value.

The new deal will evidently pour more money on clubs with the broadcasters willing to pay more than £10 million to screen each game.

To put it into perspective, based on current deals, La Liga earns around €1000 million less than the Premier League. Real Madrid and Barcelona, who have individual contracts with broadcasters, earn around €140 million a year which is considerably more than what the Premier League top-earners get every year but the financial distort in La Liga is imbalanced to a fault.

At the end of 2013-14 season, Valencia made €48 million and Atletico Madrid earned €42 million, compared to €74.5 million - lowest in the Premier League - made by relegated side Cardiff City. Cardiff’s Spanish counterparts Almeria raked in a measly €18 million.

Over 800 million in tax is garnered from the Premier League players

According to EY’s calculations, the Premier League’s humongous monetary contribution could pay the salaries of 93,000 police constables – well over 90% of all constables in England and Wales.

It is estimated that £891 million in tax comes directly from Premier League players.

The Premier League’s growth in both financial terms and in infrastructure helped support 103, 354 Full Time Equivalent jobs in the United Kingdom in 2013/14. The Premier League clubs committed to adopting the Living Wage for their full time employees in March 2015 and the scheme is expected to commence itself from the start of the 2016-17 season at the latest.

“Being in the Premier League and the economic benefits that it brings has been key. Possible stadium purchase and expansion, continuing club growth and the city of Swansea being known around the world are all linked to our success on the Premier League stage,” added Huw Jenkins, chairman of Swansea City.

Swansea have enjoyed a fair bit of success and riches since their promotion to the Premier League back in 2011. A regional survey from the South Wales Chamber of Commerce has revealed that even towns within a 50 to 100 mile radius of Swansea have benefited from the club’s global exposure.

The Premier League believes that their achievements on the monetary front in recent years are a result of their continued focus on providing top quality football, with compelling games in world-class stadiums full of passionate fans.

The full EY Economic Impact Assessment is available here.