Premier League wages hit record high of £1.6bn

The rise in player wages has achieved record levels in the Premier League ahead of the introduction of UEFA's financial fair play rules.



The latest annual review of football finance by analyst Deloitte highlighted the fact increase in wages outstripped revenues growth.

That has resulted in a wages/revenue ratio of 70% in the English top-flight, a record figure that has gradually increased from the low-to-mid 60s five years ago.

Wages went up by £201m in 2010-11 to almost £1.6bn, a 14% rise, with overall revenues up by 12% to £2.27billion, largely due to a healthy increase in overseas TV rights.

Alan Switzer, director in the sports business group at Deloitte, has warned clubs must be careful to ensure wages do not spiral out of control.

"If the wages to revenue ratio is 70% 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 1% that it drops should increase operating profits by £20m to £25m."



TOP PREMIER LEAGUE WAGE BILLS 2010-11



Chelsea - £191m (up from £174m in 2009-10)

Manchester City - £174m (£133m)

Manchester United - £153m (£132m)

Liverpool - £135m (£121m)

Arsenal - £124m (£111m)



PREMIER LEAGUE FINANCES 2010-11



- Revenues of 2.5bn euros, 769m euros ahead of second highest revenue earning league, the Bundesliga.

- Total operating profits of 75m euros, second behind the Bundesliga's 171m euros.

- Total revenues up by 12%.

- Matchday revenues up by 4%.

- Broadcasting revenue up by 13% and commercial revenues up by 18%.

- Majority of increase in commercial revenues down to Man Utd, Man City and Liverpool.

- Record loss of £82m at Man City.

- Man Utd generated operating profit greater than £100m for first time.

- Pre-tax losses of £380m, with only eight clubs recording a pre-tax profit.