It may be a beautiful game, but it's also big business. Revenue at English Premier League clubs passed £2 billion for the first time last year, but soaring wages remain a concern for the world's richest football league.
The 20th Annual Review of Football Finance by Deloitte, a consultancy, reported that Premier League clubs earned £2.03bn (Dh12.23bn) in 2009-2010, a figure expected to rise to £2.2bn in 2010-2011 when new television deals kick in, particularly from emerging markets such as the Middle East.
"The EPL is without question top of the global league table of national leagues in terms of both TV viewers and sponsorship revenue," said Jamie Cunningham, the chief executive of Professional Sport Group.
"Africa, Asia and the Middle East has been core to its success. This is ultimately why it generates more revenue than the other leagues. While Spain only has the big two clubs, the EPL now has the big five, and Tottenham may yet ensure that this becomes the big six. This competition and the marquee international players who play in the EPL are key to its success."
However, the report cautioned that the additional revenue of £49 million was outstripped by the rise in total wage costs of £64m, taking total payroll costs to more than £1.4bn, or 68 per cent of revenues. At that rate, with 1,063 goals scored last season in total, each ball hitting the back of the net cost a whopping £1.4m.
Chelsea had the biggest wage bill (£174m), followed by Manchester City (£133m), which is owned by Sheikh Mansour bin Zayed, marginally ahead of its neighbour and rival Manchester United (£132m).
City's wage bill amounted to 107 per cent of the club's revenue, compared with United, the league champion, whose wages-to-revenue ratio came in at 46 per cent.
Such gaps will have to be closed under Uefa's Financial Fair Play rules, which will seek to make clubs participating in European competition break even by 2011-2012.
"Cost control remains the biggest challenge facing clubs, at all levels of the professional football pyramid," said Paul Rawnsley, a director in the sports business group at Deloitte.
They could also meet the requirements if revenues increase. Mr Rawnsley thinks English Premier League clubs would be able to make the transition to Uefa's financial regulations given the league's standing as the most lucrative in world football.
"Premier League clubs should be well placed to comply with Uefa's regulations, as the Premier League remains the top revenue-generating league in Europe," Mr Rawnsley said.
"Clubs have time to make adjustments to their business plans before the new regulations are effective, as well as increased broadcast revenue from 2010-2011 to help deliver a better balance between spending on players and revenue generation."
The Premier League revenue of £2bn far exceeded any other European league, topping Germany (£1.4bn), Spain and Italy (£1.3bn each) and France (£0.9bn).
Deloitte said net debt at Premier League clubs fell by 20 per cent to £2.6bn in 2009-2010, and the subsequent takeover at Liverpool should reduce that figure further in the next report.
Germany's Bundesliga remains more profitable than England's top flight, with a figure of €138m (Dh740.9m) compared with £83m.
They are the only two of the Europe's top five leagues to record operating profits, with losses in Spain, Italy and France.
Revenue in the Bundesliga grew 6 per cent to €1.7bn, while Germany enjoys the largest average attendance (42,700) in European football.
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Name: Hassan Mohsen Elhais
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Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
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Tamkeen's offering
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AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
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5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Liverpool's all-time goalscorers
Ian Rush 346
Roger Hunt 285
Mohamed Salah 250
Gordon Hodgson 241
Billy Liddell 228
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Who is Mohammed Al Halbousi?
The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.
The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.
He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.
He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.
He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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UAE currency: the story behind the money in your pockets
Match info
Arsenal 0
Manchester City 2
Sterling (14'), Bernardo Silva (64')
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THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
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