Champion’s (financial) hangover: The most exciting (and expensive) end to a Premier League season to date

By winning the 2011/12 Premier League, Manchester City adds to the small group of 4 (now 5) teams to top the league since its creation in 1992. The top positions of the league have been dominated by few teams, with Manchester United wining 12 times out of 20 seasons. Finishing at the top of the league table appears to have a cumulative effect, making access to finance easier, increasing fan base, and ability to attract top talent. By a casual measure of revenue dispersion, the gap between revenue earned by the top and bottom clubs in the league is widening.

It is argued that spectator demand increases the more uncertain the match outcome. Therefore, the more equal the teams in the league are, the more exciting the contest is. As mentioned by media and pundits, the season finale was the most exciting in memory. City’s first league win (on just goal difference) puts on hold United’s 13^th win. Undoubtedly then, City’s performance has increased the appeal of the competition but at what cost?

Manchester City’s pre tax profit shows a £92.6 million and a £121.3 million loss for 2009 and 2010 respectively. Manchester United on the other hand achieved a £21.6 million profit and a £108.9 million loss over the same periods. The immediate benefit is relatively small, first place was granted with 15.14 million second place 14.38 million for the 2010/11 season.

With 2011 and 2012 figures yet to be added, the cost of City lifting the trophy is sizeable compared to the short term benefit. Leaving the suggestion that for those in charge at City, beating the neighbours was benefit enough!