The Deloitte report into the financial state of football in England shows alarming trends of massively increasing salaries being paid to players and an ever-growing mountain of debt.

Dan Jones, a partner at the Deloitte Sports Busines Group, says: "A shared will and action individually by all the clubs to limit wages growth would deliver increased profitability for all. But the pursuit of on-pitch success and intense competitive desire to gain an edge mean clubs continue to invest heavily in their playing squads and bid the market up to the detriment of clubs' finances and the benefit of players and their agents.”

Only eight Premier League clubs recorded an operating profit in 2006-07; total debt for all 20 clubs was up 19 per cent to more than £2.4billion, although £1.25billion of that figure is accounted for by Manchester United and Chelsea, and interest charges for Premier League credit were £144m in the year.

'It certainly does seem that the financial success of the Premier League could continue forever'


English football has turned its back on the credit crunch and spent its way to success, but the price is a sea of red on club balance sheets.

Jones adds a warning for clubs in League One and Two, where there have been a series of administration orders on clubs such as Luton Town and Bournemouth.

“Below the top two divisions, managing the club's financial position remains a challenge,” Jones says. “Legacy debt issues and the risks taken by some boards of directors will, without correction, inevitably lead to a continuing flow of insolvencies.”

It certainly does seem that the financial success of the Premier League could continue forever. The money pouring in right now from foreign investors like Roman Abramovich plus TV rights only seems to surge every year. Despite this, it does seem that much of the revenue is being spent rather recklessly in order to achieve success on the pitch.

Manchester United looked unbeatable on the pitch this past season and it seems like they could go on winning forever, but lots of clubs have been in this position. Most recently we can look to the fall of AC Milan, Barcelona and Real Madrid. All three clubs enjoyed major success over a two-to-five year period before falling from grace quite abruptly.

I wonder if the Premier League's financial success is set for a similar dissent. All it might take is for another league to boost its market share or an economic downturn that hits the League's major investors hard, and suddenly the revenue has dried up and the debt still needs to be paid off.

The Premier League has been quick to crown itself as the best league in the world in every way. If pride really does come before the fall, we could be in for one big thud.