Blues in a spending league of their own

CHELSEA are the biggest spenders on wages in the world, but the other 19 Premier League clubs are for the first time spending less overall on players’ pay, according to an annual review of football finance.

The report by Deloitte says that across 19 of the 20 Premier League clubs, the total wage bill for 2003-04 was 1% lower than the previous year.

Even with Chelsea included, the total Premiership wage bill went up only 7% from £761m (€1.14 billion) to £811m (€1.2bn) - the lowest growth rate since the formation of the Premier League in 1992, and well below the staggering average annual rate of 23% over the previous decade.

Deloitte sports business consultant Paul Rawnsley believes the slowdown does not herald a recession in the English top flight but reflects clubs taking a more prudent approach to player wages.

Rawnsley said: “At the top clubs the biggest stars are still being very well paid - and the amount Chelsea are paying skews the figures - but in the middle ground there are not the rates of increases seen in the previous 10 years and even decreases.

“The clubs would have known that their income from the new Sky TV deal would be slightly lower and look to have adjusted accordingly.

“There has also been an increase in performance-related pay and it would be healthier if there was a greater move to these sorts of contracts where players were rewarded for Champions League qualification or Premier League survival.”

The year covered by the report was Roman Abramovich’s first full season of ownership and so does not cover any spending last summer by new manager Jose Mourinho.

The Deloitte report states: “Chelsea had a total wages bill of £115m (€171m), £38m (€56.75m) higher than the second placed club, Manchester United, and almost certainly the highest football club wages bill in the world.”

There was a fall of 7% in players’ earnings in the Championship to £138m (€206m) - a reversal of an average 15% increase over the last decade, and player wages also declined in Leagues One and Two, by 17% and 4% respectively.

In terms of overall revenue, Premiership clubs earned £1.3bn (€1.94bn) in 2003-04, confirming it as the biggest league in Europe by a record margin and representing 18% of the total £7.5bn (€11.2bn) European football market.

Deloitte partner Dan Jones added: “The Premiership continues to go from strength to strength with solid top-line growth.

“This gives the Premiership a competitive advantage compared to its European rivals, most notably when it comes to attracting and retaining top quality players.

“Premiership and Football League clubs have also had success in reining back costs, particularly wages, and in doing so have improved the profitability of English professional football.”

Manchester United were again top of in terms of revenue generation with £172m (€256.8m) but Chelsea, with £144m (€215m), narrowed the gap.

Manchester United’s revenue generation was the most for any club in the world.