© EuroFootball.com
"The Guardian" reports that salaries of football players competing in the English Premier League have reached unprecedented heights. The growth of salaries has exceeded the growth of club revenues. A study conducted by the company "Deloitte" shows that on average, as much as 70% of English clubs' revenues are allocated for salaries. In the 2010-2011 season, English clubs spent 1.6 billion pounds on salaries, which is 14% more than the previous season. Revenues only grew by 12% and reached 2.27 billion pounds.
Spending on player acquisitions increased significantly. In the 2010-2011 season, 769 million pounds were allocated for this purpose - 38% more compared to the previous season.
The majority of the growth in club revenues came from new contracts with television companies.
In the second tier of the English leagues, the Championship, 90% of club revenues are spent on salaries.
Alan Switzer, director of the Deloitte Sports Business Group, says that salary control is one of the most important factors when thinking about business success: "If more than 70% of revenues are spent on salaries, it is very difficult to think about profit."
According to him, salaries should account for less than 65% of revenues.
It will be very difficult for clubs like "Manchester City" and London's "Chelsea" to comply with UEFA's Financial Fair Play rules, as these clubs have the biggest losses. The pre-tax losses of all English clubs reached 380 million pounds.
The most profitable league in Europe is the German Bundesliga, whose profit in the 2010-2011 season reached 154 million pounds - 24% more than the previous season.
