The influx of expensive foreign stars pushed English soccer into the red to the tune of almost £100 million sterling in the 1995/96 season, according to a study by Deloitte & Touche. Income for England's 92 professional clubs rose more than 10 per cent to £517 million in the season before last, Deloitte & Touche said. But pre-tax losses climbed to £98.2 million as wages spiralled higher and transfer money flowed abroad. "Much of the overall loss was due to the influx of overseas players into the English game - and that's affecting the game at all levels," said Mr Gerry Boon, head of Deloitte & Touche's football industry team. "English football is financing a fair slug of football in Italy and other countries," he added, noting that clubs were now recruiting abroad rather than buying from smaller English rivals.
Clubs spent £93 million on overseas players in 1995/96, treble the amount the previous year. That trend continued last season as Premier League clubs like Chelsea recruited Italians Gianfranco Zola and Roberto di Matteo following the European championships.
The report ranked English champions Manchester United as the biggest club in Europe and probably the world, putting their turnover ahead of that of Germany's Bayern Munich, Italy's AC Milan and Juventus and Spain's Barcelona.
English soccer has enjoyed a boom since the Premier League was launched five years ago, television pumping vast sums of money into the game and crowds flocking to new stadia to watch some of the world's top players.
Financial institutions have woken up to soccer's potential as a leisure business and 18 clubs are now listed on the London stock exchange. Published as English clubs prepare for a new campaign beginning this weekend, the report cited wage increases as a major cause for concern.
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