Premier League clubs lose half-a-billion pounds

Premier League clubs made collective losses of almost half-a-billion pounds last year, despite record incomes, and 16 of the 20 clubs currently in the division recorded a loss in 2009-10.

The four that did make a profit were Arsenal, Birmingham, Wolves and West Brom - although the latter were in the Championship in the last financial year and Arsenal's £56m profit was down to income from the development at their former home, Highbury.

The Premier League's total wage bill in 2009-10 was £1.4bn, which works out at an average of £70m per club, and that, in turn accounted for more than two-thirds of the clubs' income - if Arsenal's Highbury profits are taken out of the equation. Total revenues for the clubs stood at £2.1bn, which mainly came from TV rights deals and ticket sales.

Under new financial fair play rules to be introduced by Uefa clubs will not be allowed to lose more than £40m between next season and 2014, and owners cannot subsidise them. Any club that does not meet the guidelines faces being excluded from Uefa competitions.

Manchester City had the biggest pre-tax loss of £121m in 2009-10. Their city rivals United lost £79m, Chelsea lost £78m.

Read a full report at the Guardian. ·