Wages soar as Premiership remains world's highest earner

Source: Stock Market Digital

Date :31/05/2007 09:25:43

A report from Deloitte has revealed that Premier League wages are set to break the £1bn barrier for the first time in the competition's history.

A £1.7 billion television deal for top-flight games comes into effect next season, and salaries and bonuses will increase in line with the deal.

Deloitte's annual review of football finances showed Premier League wages rose 9 percent to £854 million in 2005/06.

Chelsea were the biggest spenders, with an outlay of £114 million while four other clubs paid more than £50 million.

The new TV revenue - including domestic and international rights - equates to about £300 million extra per season over the lifetime of the current three-year deal.

Deloitte said the wave of new owners at clubs, including the American owners at Aston Villa and Liverpool, was likely to result in more restraint in spending, with servicing debt and investing in stadia being key priorities.

The report confirmed that the Premiership was again the top-earning league in the world.

Its 20 clubs generated £1.4 billion in turnover on 2005/06, a figure expected to rise to £1.8 billion in 2007/8.

The report suggested that the increased revenue - alongside cost controls - should almost double combined operating profits to £260 million next season.

Manchester United was once again top of the English revenue league, making £167.7 million.

The club was followed by Chelsea on £152.8 million, Arsenal on £133 million and Liverpool on £121.6 million.

Arsenal's revenue is expected to have soared in 2006/07, with its income from gate receipts and corporate hospitality boosted by its first season in the 60,000-capacity Emirates Stadium.

Only nine Premiership clubs, however, actually made a pre-tax profit - down from 14 in 2004/05.

May 31 2007