Premiership pay bill to top £700m

The estimate of the pay increases was derived from analysis of the costs and wage bills of the five Premiership clubs - Leeds United, Aston Villa, Tottenham Hotspur, Newcastle and Southampton - that have already reported to their shareholders.

A 24 per cent rise averaged out across the Premiership means the top flight is paying its players £140 million more than last season.

If anything this is likely to be a slight underestimate, as the two of the biggest payers, Manchester United and Chelsea, have not yet reported.

Of the Premiership clubs that have already reported results this season, Leeds have already indicated they will have to sell at least four players in a bid to raise up to £30 million to cut their debt pile, which has doubled to £77 million. The Yorkshire club's wages, inflated by the arrival of internationals such as Robbie Fowler, who gets £50,000 a week, Rio Ferdinand, who is paid £40,000, and striker Robbie Keane, leapt by more than £4 million in the half year to more than £22 million and sent the business into losses totalling £20 million in the last 18 months. Failure to qualify for the Champions League lost it £5 million in television and gate revenues.

Aston Villa's player wages, up by about a third, meant that the club's first half operating costs exceeded income by £4.3 million. A £9 million profit on the sale of Gareth Southgate, David James and Julian Joachim meant the pre-tax interim loss was "only" £1.4 million.

Newcastle United's losses in the last 18 months have risen to more than £10 million and like Villa they cut the dividend to shareholders. Their interest bill has leapt 21 per cent on £50 million debt after, like Leeds United, they mortgaged future gate receipts.

Southampton balanced the books with player sales but the move to their new St Mary's stadium has seen debts double in the year to £23 million.

Operating costs at Tottenham have soared by nearly a third as Teddy Sheringham, who commands a £35,000 a week package, Dean Richards, Gus Poyet and Christian Ziege were added to the payroll against a revenue rise of only six per cent. Such figures lay behind why so many quoted clubs' share prices are languishing at or near all-time lows. Further financial results are due this week from Manchester United, followed by Chelsea next week.

A Premier League spokesman said it is not alarmed by the wage-revenue mismatch: "We think the clubs are more aware of their financial situation than perhaps was the case in the mid-Nineties."