Premier League football clubs saw their combined revenues increase by 3% in 2014-15 to £3.4bn, a new record, according to business group Deloitte.
But their combined pre-tax profits fell to £120m, from £190m a year before.
Season 2014-15 saw the second-biggest aggregate pre-tax profit, after record-breaking results in 2013-14.
It was also the first time this millennium that there had been a second successive year of combined pre-tax profits for the top-flight teams.
“The perennial problem for Premier League clubs was to convert impressive revenue growth into profitability,” said Dan Jones, partner in the Sports Business Group at Deloitte.
“We saw this problem solved with record-breaking results last year. The new challenge was to sustain this financial success, and the Premier League clubs have accomplished this in impressive style in the latest results.
“With further significant revenue increases already guaranteed for the next broadcast cycle, starting in 2016-17, there is every reason to be confident of the Premier League clubs’ profitability being here to stay.”
In addition, in 2014-15 Premier League clubs saw combined operating profits – which exclude player trading, net interest charges and the amortisation of player contracts – of roughly £550m.
Of the 20 clubs in the Premier League, 17 recorded an operating profit in 2014-15.
But clubs wage costs also rose by 6% in 2014-15, to a total of £2bn, a record spend on salaries.
That increased the wages-to-revenue ratio to 60%. However, despite the increase in wage costs, the ratio was still the second lowest seen in the Premier League in the last 10 years.