Premier League wages hit record high as Chelsea and Man City face FFP problem

A survey has found that wages in the Premier League are at their highest level in the 20 years of the competition, with payroll increasing faster than revenue, the Guardian has reported, throwing into doubt the ability of the division’s top clubs, particularly Chelsea and Manchester City, to meet UEFA’s new Financial Fair Play regulations.

The Guardian adds that the total wage bill for the top flight went up to £1.6bn in 2010-11, according to accountancy firm Deloitte, a jump of more than £200m from the last set of numbers. It means that Premier League clubs on the whole are operating with a wages-to-revenue ratio of 70%, which means that for every pound coming into a club, 70p is spent on paying players. Deloitte recommend the figure should drop to the mid-to-low 60s, noting that every 1% drop equates to between £20m and £25m in profit.

The numbers from 2010-11 are the last before UEFA’s Financial Fair Play system comes into practice. Alan Switzer of Deloitte confirmed that Chelsea and Manchester City face the most difficult time in conforming to the rules, but did praise their attempts thus far. He said: “Chelsea and Manchester City are the clubs which have recorded the biggest losses so they are the two which have the most to do, and to be fair to them they have been pretty public about needing to take action.

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