A Deloitte & Touche (D&T) report found that Britain's
Premier League (PL) "remains the richest" soccer league in
the world, but spiraling player wage inflation "continues to
undermine the profitability" of the top 20 clubs, according
to Patrick Harverson of the FINANCIAL TIMES. The PL's
combined revenues rose 18%, to a record US$1.03B in the '98-
99 season, up from about US$848.3M the previous season.
However, wages rose by about 28% to about $608.2M, "making a
big dent in club profits." Six clubs lost money in '98-99,
an increase from four in '97-98, while only Manchester
United and Aston Villa had wages-to-revenue ratios of under
50%, the "benchmark" at which D&T regards a club as
"sustainably healthy" (FINANCIAL TIMES, 5/9). In London,
John Goodbody wrote that "there is still no sign of an end
to the money that continues to flow into the English game."
In '98-99, six clubs also made operating profits of more
than $7.66M. The PL is in the process of negotiating new TV
deals, "which are expected to be worth a total of" $3.06B to
the PL clubs in 2001-02 (LONDON TIMES, 5/9).
