English Clubs Out in Front
By Martyn Ziegler, PA Chief Sports Reporter
The Premier League rules the roost in Europe and that domination should see English sides achieve more success in UEFA’s Champions League, according to a new report.
The annual review of football finance by consultants Deloitte and Touche shows the Premier League’s total revenue in 2001/2 was up 21% to £1.132billion – 55% higher than Italy’s Serie A and more than France’s and Germany’s income put together.
The gap is likely to widen still further because the English top-flight clubs are not so reliant on TV money as leagues in Italy, Spain and France.
Dan Jones, director of Deloitte and Touche Sport, told the Press Association: “It has surprised us just how far the Premier League have managed to stretch ahead of the big competitors in Europe.
“It means that Premier League teams will be able to compete better off the field in terms of attracting players and therefore on the field.
“They should be able to keep having really good quality players in the Premier League and do that with relatively more comfort than their continental competitors.
“In the last two years the Premier League has clearly moved into a league of its own.”
A Premier League spokesman said: “The review has crowned the Premier League the financial champions of Europe. The increase in revenue, profits, attendances and investment in stadium facilities is good news for the game.”
The review also showed English clubs splashed out £4billion on player transfers and wages from 1996 to 2002 in a spending spree that financial experts believe will never be repeated.
Clubs spent £407million on transfers in that season – Premier League clubs accounting for £323million – but the report’s authors believe that figure will have fallen by up to 50% by this year.
Salaries paid by Premier League clubs rose 26% in 2001/2, but Jones claims the current cash squeeze has ushered in a new era of performance-related pay.
However, the Football League and the Professional Footballers’ Association each played down statistics which implied a much greater degree of financial prudence among lower league clubs.
Club salaries had increased by seven per cent and just two clubs were still spending more than their total turnover on wages – Coventry and Wigan – as opposed to 16 in the previous year.
League spokesman John Nagle said 2001/2 results were slightly misleading because they recorded the first year of the lucrative ITV Digital contract – before that company pulled the plug and left the game in the lurch.
Nagle said: “I think we have to be realistic because the year of this report represents a blip year, the year that we did receive the one year of ITV Digital money.
“But it is fairly obvious to anyone that in the last 18 months we have seen a substantial sea change in football finances.”
Nagle welcomed indications in the report that performance-related pay would soon become the norm in the game, with players’ contracts automatically including pay rises or decreases depending on the success or failure of their team.
The PFA claims the League are wrong to focus on wage levels and instead should encourage clubs to revamp their entire business plans.
PFA deputy chief executive Mick McGuire said: “This should not be focused on the players – it is not a player issue.
“The last year has seen us firefighting. In some cases we have offered financial support and a certain amount of direction, and our players have supported clubs by going forward with a number of wage deferments.
“But in some cases we have seen rank bad management with clubs following a business practice that you wouldn’t follow in a corner shop.
“We need to get clubs to be responsible for their own actions. There do need to be more imaginative ways of negotiating contracts to bring us flexibility.
“But what we need more than anything is clubs driving their own futures and following a financial propriety in which they don’t sell their futures today.”