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Premiership wages 'to top £1bn' Premiership wages 'to top £1bn'
(1 day later)
Premier League wages are set to break the £1bn barrier for the first time in the competition's history, a report from Deloitte has said.Premier League wages are set to break the £1bn barrier for the first time in the competition's history, a report from Deloitte has said.
Salaries and bonuses will increase next season as a £1.7bn television deal for top-flight games comes into effect, the report says.Salaries and bonuses will increase next season as a £1.7bn television deal for top-flight games comes into effect, the report says.
Deloitte's annual review of football finances showed Premier League wages rose 9% to £854m in 2005/06.Deloitte's annual review of football finances showed Premier League wages rose 9% to £854m in 2005/06.
Chelsea's outlay totalled £114m while four other clubs paid more than £50m.Chelsea's outlay totalled £114m while four other clubs paid more than £50m.
The new TV revenue - including domestic and international rights - equates to about £300m extra per season over the lifetime of the current three-year deal.The new TV revenue - including domestic and international rights - equates to about £300m extra per season over the lifetime of the current three-year deal.
Whilst wages will rise, clubs do have the opportunity to increase the importance of performance related pay structures Paul RawnsleySport Business Group, DeloitteWhilst wages will rise, clubs do have the opportunity to increase the importance of performance related pay structures Paul RawnsleySport Business Group, Deloitte
However, Deloitte said the wave of new owners at clubs, including Aston Villa and Liverpool, was likely to result in more restraint in spending, with servicing debt and investing in stadia being other key priorities.However, Deloitte said the wave of new owners at clubs, including Aston Villa and Liverpool, was likely to result in more restraint in spending, with servicing debt and investing in stadia being other key priorities.
"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 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.""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."
JUST FANCY THAT! - STATS FROM THE 2005/06 SEASON Four Championship teams paid more in wages than they made in revenuePremier League and Football League clubs paid about £50m in agents feesFrance's Ligue 1 made a profit for the first time since 2000English professional football paid about £650m in taxesChelsea's pre-tax losses fell from £140m to £80mJUST FANCY THAT! - STATS FROM THE 2005/06 SEASON Four Championship teams paid more in wages than they made in revenuePremier League and Football League clubs paid about £50m in agents feesFrance's Ligue 1 made a profit for the first time since 2000English professional football paid about £650m in taxesChelsea's pre-tax losses fell from £140m to £80m
While spending on transfers is set to exceed £300m this summer, Deloitte's Paul Rawnsley said it was not viable for clubs to simply throw money at players.While spending on transfers is set to exceed £300m this summer, Deloitte's Paul Rawnsley said it was not viable for clubs to simply throw money at players.
"Whilst wages will rise, clubs do have the opportunity to increase the importance of performance related pay structures," he said."Whilst wages will rise, clubs do have the opportunity to increase the importance of performance related pay structures," he said.
"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.""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.The report confirmed that the Premiership was once again the top-earning league in the world.
Its 20 clubs generated £1.4bn in turnover on 2005/06, a figure expected to rise to £1.8bn in 2007/8.Its 20 clubs generated £1.4bn in turnover on 2005/06, a figure expected to rise to £1.8bn in 2007/8.
And the report pointed out that the increased revenue - alongside cost controls - should almost double combined operating profits to £260m next season.And the report pointed out that the increased revenue - alongside cost controls - should almost double combined operating profits to £260m next season.
Manchester United was once again top of the English revenue league, making £167.7m.Manchester United was once again top of the English revenue league, making £167.7m.
The club was followed by Chelsea on £152.8m, Arsenal on £133m and Liverpool on £121.6m.The club was followed by Chelsea on £152.8m, Arsenal on £133m and Liverpool on £121.6m.
PREMIER LEAGUE'S TOP WAGE BILLS 2005/06 Chelsea - £114mManchester Utd - £85mArsenal - £83mLiverpool - £69mNewcastle Utd - £52m Source: DeloittePREMIER LEAGUE'S TOP WAGE BILLS 2005/06 Chelsea - £114mManchester Utd - £85mArsenal - £83mLiverpool - £69mNewcastle Utd - £52m Source: Deloitte
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.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.Only nine Premiership clubs, however, actually made a pre-tax profit - down from 14 in 2004/05.
Click here to see the wages of the Big Five leagues Click here to see the wages of the Big Five leagues
Wages paid to players in England again outstripped their European counterparts.Wages paid to players in England again outstripped their European counterparts.
The total wage bill in Italy, the second biggest in Europe, was 35% below the English level at 806m euros (£548m) while clubs in the much-admired Spanish La Liga shelled out 739m euros (£502m) to their stars.The total wage bill in Italy, the second biggest in Europe, was 35% below the English level at 806m euros (£548m) while clubs in the much-admired Spanish La Liga shelled out 739m euros (£502m) to their stars.
606: DEBATE Should TV money be used to subsidise ticket prices?
Although Italy was also the second highest earning league in Europe, falling matchday revenue was likely to see it slip behind Germany and Spain in the 2006/07 report.Although Italy was also the second highest earning league in Europe, falling matchday revenue was likely to see it slip behind Germany and Spain in the 2006/07 report.
The "big five" European leagues generated 53% of the total £8.6bn European football market.The "big five" European leagues generated 53% of the total £8.6bn European football market.
Revenue generated by clubs in the Championship - the second tier in England - grew 4% to £312m, reaffirming it as Europe's sixth biggest league.Revenue generated by clubs in the Championship - the second tier in England - grew 4% to £312m, reaffirming it as Europe's sixth biggest league.
Top league revenues 05/06 England £1.4bnItaly £1.0bnGermany £0.8bnSpain £0.8bnFrance £0.6bn Top league revenues 05/06 England £1.4bnItaly £1.0bnGermany £0.8bnSpain £0.8bnFrance £0.6bn
Last month Deloitte said promotion from the Championship to the Premiership this season would be worth about £60m for the successful clubs - Sunderland, Birmingham and Derby County.Last month Deloitte said promotion from the Championship to the Premiership this season would be worth about £60m for the successful clubs - Sunderland, Birmingham and Derby County.
And the report highlighted the financial chasm between the two divisions.And the report highlighted the financial chasm between the two divisions.
The gap between revenue at the average Premier League club and Championship side hit a record £56m in 2005/06 and was tipped to grow to £70m next season.The gap between revenue at the average Premier League club and Championship side hit a record £56m in 2005/06 and was tipped to grow to £70m next season.
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