Costly players plunge Football League into the red

A new report says footballers' rocketing wages are pushing many clubs into the red.

Although English football has become a billion pound industry, the report suggests clubs are spending above their means to stay ahead of the competition.

Deloitte & Touche's annual review of football finance reveals that more than a third of Britain's Division One clubs pay wages which exceed 100% of their income in an effort to fulfill Premiership dreams.

Britain's Premier League recorded a £34.5m pre-tax loss - a significant deterioration against a £13.7m profit in 1998-9.

And the combined losses of the Football League clubs worsened from £75.3m to £110.1m.

The 92 clubs made an overall operating loss, before transfer fees and financing costs, of £59m.

Gerry Boon, head of Deloitte & Touche Sport, says: "It is a salutary point that even if the whole of the extra £85m or so that Football League clubs will receive from TV and internet deals in the 2001-2 season was to flow through to the bottom line - ie with no wage increases at all - the 72 clubs would still have to find another £30m to balance the books.

"The leagues have done their bit by securing the major part of this massive boost in income from some superbly-timed and executed new broadcasting deals. It is now up to the clubs to use it to secure a viable future."