Premier League footballers' wages hit record highs

English Premier League clubs have been warned to bring their spending under control, after a new review into football finances showed that players' wages were at record levels, outstripping growth in club revenues.

Wages went up by £201 million (251 million euros, $312 million dollars) in the 2010-11 season to almost £1.6 billion -- a 14 percent rise -- while overall revenues at clubs rose by 12 percent to £2.27 billion, according to analysts Deloitte.

With the top 20 clubs splashing out on big salaries in an increasingly desperate bid for success, wages now account for a record 70 percent of the revenue generated by Premier League clubs.

Alan Switzer, director in the sports business group at Deloitte, warned big-spending Premier League owners that wage control was now essential, especially with UEFA's financial fair play (FFP) rules coming into force soon.

"If the wages to revenue ratio is 70 percent or higher it's very difficult to make an operating profit," he said.

"In our view it is too high as a league and the clubs need to be edging back to the low 60s. Every one percent that it drops should increase operating profits by £20 million to £25 million."

The wage rises at some of the league's bigger clubs have been offset by significant rises in commercial income at some sides, including Manchester United, Liverpool and Manchester City.

The figures are for the 2010-11 season and will be the last before UEFA start taking them into account for their FFP calculations, where clubs in European competition have to break even or risk fines and even suspension from competitions.

Switzer said league champions Manchester City and Champions League winners Chelsea, owned by Abu Dhabi-based Sheikh Mansour and Russian Roman Abramovich respectively, faced the greatest challenges in conforming to the FFP rules.

"Chelsea and Manchester City are the clubs which have recorded the biggest losses so they are the two which have the most to do, and to be fair to them they have been pretty public about needing to take action," he added.

"A significant number of clubs around Europe have some distance to travel on the road towards compliance."

The Deloitte report does not cover the most recent season but it does show the effect of Britain's 50 percent tax band coming into play -- the 92 league clubs paid nearly £1.2 billion in tax, up 20 percent.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Fight vs online libel goes to the UNHCR Ederic Eder, Yahoo! Southeast Asia - The Inbox
    Fight vs online libel goes to the UNHCR

    Commentary By Ellen T. Tordesillas Last Tuesday, while in Baguio City for their summer session, the Supreme Court denied all the Motions for Reconsideration on Online Libel which it upheld in its Feb. 18, 2014 decision. It will be recalled … Continue reading → …

  • Book chronicles efforts for PWD-friendly polls VERA Files - The Inbox
    Book chronicles efforts for PWD-friendly polls

    By Melissa Luz Lopez, VERA Files A lot have been done but much still need to be done for a hassle-free  participation of  Persons with Disabilities in elections,according to a book published by The Asia Foundation (TAF) and supported by … Continue reading → …

  • The other side of Palawan Ellen Tordesillas, Contributor - The Inbox
    The other side of Palawan

    By Ellen T. Tordesillas Mention Palawan and what comes to mind are Underground River and El Nido in the northern side of this richly-blessed province from its capital, Puerto Princesa. Three weeks ago, we went to the southern side- in … Continue reading → …

POLL
Loading...
Poll Choice Options