The Premier League player wages bill for 2009-10 has been estimate by Deloitte's to be £1.4bn, up 5 per cent on the previous season, enhanced by a 61 per cent increase in the wage bill for Sheikh Mansour bin Zayed al-Nahyan's Manchester City.
Deloitte’s annual football finance review states that the Premier League clubs contributed £725m to the taxman in the 2009-10 season, including tax on salaries of £458m and national insurance contributions of £188m. Since then, the clubs have benefited from a 30 per cent uplift in broadcast revenues, which tends to be used to meet the demands of the top players.
The tax contribution of the Premier League’s 20 clubs will exceed £1bn this season thanks to the spiralling cost of player wages. The tax take would represent an increase of more than a third over the past two seasons.
With the new 50 per cent tax rate for high earners. “The money that goes out in PAYE (pay as you earn) is bigger than the cheque that clubs write to the players,” said Dan Johnson, a League’s spokesman.
The summer transfer window closes on Wednesday, inflated wages will be a major factor to encourage player movement in the Premier League which can only be a massive plus for the taxman.