Premier clubs to net £1bn

The English Premier League, boosted by rocketing broadcast income, is poised to become the sport's first £1bn league, an influential report predicts.

Turnover at the Premier League's 20 clubs, historically Europe's most profitable, has risen by five times since the league was formed in 1992, according to consultants Deloitte & Touche Sport.

Income from broadcasting rights alone hit £242m last season, compared with £43m in the 1995/96 campaign, and is set to rocket to £484m next season, Deloitte estimates.

Broadcasting rights will soon, for the first time, outstrip takings from ticket offices and other matchday operations.

TV deals will strengthen the English Premier League's position as "the best league in the world in economic terms".

Gerry Boon, head of Deloitte & Touche Sport, said: "At this rate, with new television deals secured for the 2001/02 season, the Premier League will soon be the world's first £1bn league, perhaps by May 2001."

But he warned that, despite the increased takings, Premier League profitability had declined, with the clubs overall reporting a £34.5m last season, compared with a profit in the 1998/99 session.

Chairmen warned

Just seven premiership clubs ran at a profit last season, compared with 12 the previous year.

Football clubs, many of which are listed on the London Stock Exchange, are "really not an investment proposition", the report said.

There were signs that a few chairmen and managers were making a stand against some player wage demands

Gerry Boon
Deloitte's

The decline in profitability was largely blamed on wage costs, which rose 20% over the year, sending the average wage of Premier League players to £400,000 a year.

Mr Boon urged chairmen to fight wage demands which, for top players, are thought to be rising to £100,000 a week.

"There were signs that a few chairmen and managers were making a stand against some player wage demands," said Gerry Boon, head of Deloitte & Touche Sport.

"But key developments over the last year suggest player salaries will continue to spiral."

Wages mean results

However, the report also revealed a correlation between a club's achievements and the sum it spends on player salaries.

Nicholas Anelka: transfer boosted Arsenal coffers

"It would appear... that the more a club pays in wages and salaries, the better absolute performance it will have in the league."

Wimbledon and Sheffield Wednesday, which were both relegated last season, were amongst clubs with the lowest salary bills.

League champions Manchester United had, at £47m, the league's second highest wages bill, with FA Cup winners Chelsea the salary leader.

Arsenal, however, proved the best performing premiership operation off the pitch, reporting a pre-tax profit of £22.2m to overtake Manchester United, ranked the world's most profitable club for three years in a row.

Arsenal's finances were boosted by the £23.5m transfer of striker Nicholas Anelka to Real Madrid.

The £30m transfer of Emmanual Petit and Marc Overmars to Barcelona last July will "inevitably place Arsenal at or near the top of the [2000/01] profits league", the report said.