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GUEST,Bob BS: Premiership wages 'to top 1bn (9) BS: Premiership wages 'to top 1bn 31 May 07

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.

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.

Whilst wages will rise, clubs do have the opportunity to increase the importance of performance related pay structures
Paul Rawnsley
Sport 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.

"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."

Four Championship teams paid more in wages than they made in revenue
Premier League and Football League clubs paid about 50m in agents fees
France's Ligue 1 made a profit for the first time since 2000
English professional football paid about 650m in taxes
Chelsea'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.

"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."

Graph showing where revenue is made

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.

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.

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

Are they worth it I ask ?

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