LONDON: The English Premier League, despite being the richest football championship in the world, is losing money – an apparent £110m in season 2015-2016 – according to the latest Deloitte report.

A sharp increase in wages mainly explains these losses. The Premier League thus fell back into the red after two profitable years in 2013-2 014 and 2014-2015. However this may prove only a one-year blip.

Deloitte’s Dan Jones said: “We expect that the new broadcast contract for the next three years will generate a return of profits for the 2016-2017 season.”

Clubs saw increased player expenditure, operating costs and one-off charges.

The two Manchester clubs’ revenues increased by a total of £160m – roughly half of the total revenue growth recorded by the Premier League clubs.

Jones said Manchester United’s participation in the 2015-16 Champions League, along with continued strong commercial revenue growth, resulted in a 30pc increase in revenue to £515m, making them the world’s highest revenue-generating club.

He added: “Increased distributions to clubs competing in Europe, under the new Uefa broadcast rights cycle – notably Manchester City, who reached the semi-finals of the Champions League – also contributed to Premier League clubs’ revenue growth.”

The numbers:

(2014-15 in brackets)

Revenues – £3.6bn (£3.4bn in 2014-15)

Wage costs – £2.3bn (£2bn)

Other operating costs – £900m (£800m)

Operating profit – £500m (£500m)

Net player trading – £400m (£300m)

Other costs – £200m (£100m)

18 clubs made an operating profit

12 clubs made a pre-tax profit

Source: Deloitte Analysis