Analytics website Vysyble has revealed that the Premier League will witness the first ‘billion-pound game’ when Manchester United face Arsenal on Saturday afternoon.
Jose Mourinho’s men travel to the Emirates Stadium as they both need a win to continue their title race after table-toppers Manchester City. As both clubs recently posted their annual revenues, Vysyble has drawn the conclusion that the combined turnover is worth over £1bn.
The Gunners have netted £424m in 2016-17, while United cashed a record £581m that make them the highest money-generating clubs in the Premier League.
Both teams have seen their revenues massively increasing since the year 2015-2016, as Vysyble’s Roger Bells said in a statement (via ESPN): “This is a remarkable achievement for the Premier League in terms of reflecting the success in driving revenues via lucrative TV rights deals.”
Bell has pointed out that most of the cash that goes into English clubs’ pockets does not fully translate into profits, as Premier League outfits spend a large amount on players’ wages and transfer fees.
However, Vysyble has also suggested that these teams actually fail to make substantial profits as they underestimate the costs of doing business in the football market, as they said: “This is part of a longer-term trend whereby clubs, in general, are finding it very difficult, despite their record revenue levels, to generate value and achieve an economic profit, which is where all the costs of doing business are accounted for, including taxes.”
The analysts further added that Arsenal and United’s losses are relatively “modest” compared to others, and average around 4.2m and £16.3m respectively.
Despite some teams’ attempts to change the revenue-sharing formula that has characterised TV deals for the Premier League overseas, the proposal was not welcomed by everyone.
Bell said: “We continue to worry for the game’s longer-term health and structure as the continued quest for revenue will inevitably lead the top clubs to look beyond current competition formats.”