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Study shows concern over rising wages in football

Dunya News

The study found the revenue at clubs in top leagues rose in the 2010-11 season to 16.9 billion.

Europes leading football clubs maintained revenue growth despite recent global financial turmoil, but have failed to control escalating salaries.The annual study of football finances by accounting firm Deloitte found that revenue at clubs in the top leagues England, Germany, Spain, Italy and France rose by 4 percent in the 2010-11 season to €16.9 billion, which converted to $24.5 billion at the time of the study.But Deloitte warned that wages costs are growing at a faster pace than revenues, with salaries soaring by more than €100 million to exceed €5.6 billion (then €8.1 billion).Cost control continues to be European club footballs greatest challenge, Adam Bull, a consultant in the Sports Business Group at Deloitte, said. The wages to revenue ratio across Europes big five leagues has increased from 60 percent to 66 percent over the last five years.The 2010-11 season was the last before UEFA started taking figures into account for its financial fair play calculations where clubs have to break even or risk being excluded from European competitions from 2014.Premier League wages grew the most, by 14 percent to €1.8 billion ($2.6 billion), but the 20 clubs generate the most revenue in Europe €2.5 billion ($3.6 billion).Spains La Liga is third-ranked by revenue €1.72 billion ($2.5 billion) but pays the second-highest wages in Europe at €1 billion (then $1.5 billion).The Bundesliga remained the most profitable league with a 25 percent increase in operating profits to €171 million ($248 million), compared with €75 million ($109 million) in England.The German Bundesliga has the highest average attendances in European football (42,100) which, when combined with an increase in commercial revenues from Europes largest economy, helped maintain its second placed revenue ranking, Dan Jones of Deloitte said. The additional UEFA Champions League spot for Germany from 2012-13 and 50 percent lift in domestic league broadcasting rights from 2013/14 will help continue the Bundesligas impressive recent revenue growth and secure its status as the Premier Leagues closest rival in revenue terms.