Premier League wages fall for first time - Deloitte

Players' wages in the English Premier League fell for the first time in the 2004/05 season, according to consultants Deloitte.

The Deloitte Annual Review of Football Finance, released yesterday, found that Premiership wage costs fell three per cent after rising by 20 per cent each year on average in the past decade.

"Our latest analysis further supports the improving balance between revenue and costs, not just in England but also across Europe," said Deloitte partner Dan Jones.

"The need to 'save clubs from themselves' with a salary cap now seems far less important than it did five years ago."

Premier League clubs remained by far the biggest earners in world soccer and were the most profitable in Europe, generating more than £1.3 billion in revenue.

The big five leagues in England, Italy, Spain, Germany and France generated revenues of €6.3 billion, a growth of eight per cent over the previous year.

However, only clubs in the Premier League (€240 million) and the Bundesliga (€65 million) posted operating profits in 2004/5.

Big-spending champions Chel-sea and Fulham were the only clubs to report operating losses in England's top flight.

"Clubs are adopting a much more realistic attitude in terms of wages, much more flexible wage bill, the use of loan players, increased performance-dependent elements," Deloitte's senior consultant Alan Switzer told Reuters.

Big five

Manchester United reported English football's highest operating profits although they fell from a record £52 million in 2003/04 to £33 million. Liverpool's 2005 Champions League success boosted their profits to £25 million.

The average Premier League club generated revenue of £67 million, up from £66 million in 2003/04 and compared to just £13 million for first division clubs.

The 'Big Five' leagues accounted for 54 per cent of the revenues in the £7.8 billion European market, with Italy generating 0.9 billion, Germany 0.8, Spain 0.7 and France 0.5.

Deloitte warned that, for many leagues, a significant percentage of revenue was generated by a handful of wealthy clubs which was also reflected in on-field performance.

Switzer said Barcelona and Real Madrid contributed 47 per cent of the Spanish league's revenues.