Premiership Wages Will Exceed A Billion
Players' wages in the English Premiership are set to break through the £1 billion barrier for the first time in the League's history, according to a report by accountants Deloitte.
Salaries and bonuses will inflate next season as a £1.7 billion TV broadcasting contract for Premiership matches kicks in.
The report - Deloitte's annual review of football finances - showed that Premier League wages rose by 9% to £854 million in 2005-06.
Chelsea's wage bill totalled £114 million, while four other clubs paid more than £50 million.
The new TV revenue - including domestic and international rights - represents an extra £300 million per season over the lifetime of the current three-year deal.
But Deloitte reckons that the wave of new owners of clubs like Liverpool and Aston Villa could produce greater restraint in spending, with servicing debt and investing in stadia also assuming priority.
"A lot of these new owners have had sporting success but also considerable financial success", said director of Deloitte's Sports Business group, Alan Switzer.
"A decent chunk of the money will still flow through to the players, but we don't think it will be the same proportion that flowed through previously."
Deloitte forecasts that transfer spending this summer will exceed £300 million, with Paul Rawnsley of the Sports Business Group explaining: "Whilst wages will rise, clubs do have the opportunity to increase the importance of performance related pay structures.
"This will both insulate the business in future when on-pitch results are not so good, and also help motivate and reward players and management for winning."
The report confirmed that the Premiership was once again the top-earning league in the world.
Its 20 clubs generated £1.4 billion in turnover in 2005-06, and that figure is expected to increase to £1.8 billion in 2007-08.
Deloitte said that increased revenue together with cost controls should almost double the clubs' combined operating profits to £260 million next season.
Manchester United were again the highest earners in England, with revenue of £167.7 million.
Then came Chelsea on £152.8 million, Arsenal on £133 million and Liverpool on £121.6 million.
However, Arsenal's revenue is expected to have soared in 2006-07, with income from gate receipts and corporate hospitality boosted by the club's first season in the 60,000-capacity Emirates Stadium.
However, only nine Premiership clubs actually made a pre-tax profit in 2005-06, compared with 14 in 2004/05.
The amount in wages paid to players in England was again greater than that paid in the other European leagues.
The total wage bill in Italy, the second biggest in Europe, was 35% lower than that in England at 806 million euros (£548 million). Clubs in Spain's Primera Liga paid out 739 million euros (£502 million) to players.
However, although Italy was also the second highest earning league in Europe, falling matchday revenue means earnings probably slipped behind those generated in Germany and Spain during 2006-07.
The "big five" European leagues generated 53% of the total £8.6 billion European football market.
Revenue generated by clubs in the Championship - England's second tier - increased by 4% to £312 million, making it again Europe's sixth biggest league.
Deloitte had recently estimated that promotion from the Championship to the Premiership this season would be worth about £60 million to the three successful clubs - Sunderland, Birmingham City and Derby County.
But the gap between average revenue per club in the Premier League club and that in the Championship widened to a record £56 million in 2005-06 - and is forecast to expand to £70 million next season.
Statistical Highlights From The Deloitte Report (2005-06 Season):
* Four Championship teams paid more in wages than they made in revenue
* Premier League and Football League clubs paid about £50 million in agents' fees
* France's Ligue 1 made a profit for the first time since 2000
* English professional football paid about £650 million in taxes
* Chelsea's pre-tax losses fell from £140m to £80m
Premiership's Top Wage Bills, 2005-06
* Chelsea - £114m
* Manchester Utd - £85m
* Arsenal - £83m
* Liverpool - £69m
* Newcastle Utd - £52m
Top European League Revenues, 2005-06
* England £1.4bn
* Italy £1.0bn
* Germany £0.8bn
* Spain £0.8bn
* France £0.6bn
Players' wages in the English Premiership are set to break through the £1 billion barrier for the first time in the League's history, according to a report by accountants Deloitte.
Salaries and bonuses will inflate next season as a £1.7 billion TV broadcasting contract for Premiership matches kicks in.
The report - Deloitte's annual review of football finances - showed that Premier League wages rose by 9% to £854 million in 2005-06.
Chelsea's wage bill totalled £114 million, while four other clubs paid more than £50 million.
The new TV revenue - including domestic and international rights - represents an extra £300 million per season over the lifetime of the current three-year deal.
But Deloitte reckons that the wave of new owners of clubs like Liverpool and Aston Villa could produce greater restraint in spending, with servicing debt and investing in stadia also assuming priority.
"A lot of these new owners have had sporting success but also considerable financial success", said director of Deloitte's Sports Business group, Alan Switzer.
"A decent chunk of the money will still flow through to the players, but we don't think it will be the same proportion that flowed through previously."
Deloitte forecasts that transfer spending this summer will exceed £300 million, with Paul Rawnsley of the Sports Business Group explaining: "Whilst wages will rise, clubs do have the opportunity to increase the importance of performance related pay structures.
"This will both insulate the business in future when on-pitch results are not so good, and also help motivate and reward players and management for winning."
The report confirmed that the Premiership was once again the top-earning league in the world.
Its 20 clubs generated £1.4 billion in turnover in 2005-06, and that figure is expected to increase to £1.8 billion in 2007-08.
Deloitte said that increased revenue together with cost controls should almost double the clubs' combined operating profits to £260 million next season.
Manchester United were again the highest earners in England, with revenue of £167.7 million.
Then came Chelsea on £152.8 million, Arsenal on £133 million and Liverpool on £121.6 million.
However, Arsenal's revenue is expected to have soared in 2006-07, with income from gate receipts and corporate hospitality boosted by the club's first season in the 60,000-capacity Emirates Stadium.
However, only nine Premiership clubs actually made a pre-tax profit in 2005-06, compared with 14 in 2004/05.
The amount in wages paid to players in England was again greater than that paid in the other European leagues.
The total wage bill in Italy, the second biggest in Europe, was 35% lower than that in England at 806 million euros (£548 million). Clubs in Spain's Primera Liga paid out 739 million euros (£502 million) to players.
However, although Italy was also the second highest earning league in Europe, falling matchday revenue means earnings probably slipped behind those generated in Germany and Spain during 2006-07.
The "big five" European leagues generated 53% of the total £8.6 billion European football market.
Revenue generated by clubs in the Championship - England's second tier - increased by 4% to £312 million, making it again Europe's sixth biggest league.
Deloitte had recently estimated that promotion from the Championship to the Premiership this season would be worth about £60 million to the three successful clubs - Sunderland, Birmingham City and Derby County.
But the gap between average revenue per club in the Premier League club and that in the Championship widened to a record £56 million in 2005-06 - and is forecast to expand to £70 million next season.
Statistical Highlights From The Deloitte Report (2005-06 Season):
* Four Championship teams paid more in wages than they made in revenue
* Premier League and Football League clubs paid about £50 million in agents' fees
* France's Ligue 1 made a profit for the first time since 2000
* English professional football paid about £650 million in taxes
* Chelsea's pre-tax losses fell from £140m to £80m
Premiership's Top Wage Bills, 2005-06
* Chelsea - £114m
* Manchester Utd - £85m
* Arsenal - £83m
* Liverpool - £69m
* Newcastle Utd - £52m
Top European League Revenues, 2005-06
* England £1.4bn
* Italy £1.0bn
* Germany £0.8bn
* Spain £0.8bn
* France £0.6bn