England’s top flight is the most glamorous league in the world and its clubs are making more money than ever, but still Premier League clubs are drowning in £2.4 billion debt, revealed the annual Deloitte review of football finance.

According to the report, Premier League clubs raked in a record combined revenue of £2.28 billion in the 2010 -11 season, rising by 9% compared to last season. In spite of the increase, operating profits reduced by 19% to £68 million, and the combined pre-tax losses were a whopping £380 million.

Chelsea and Manchester City recorded the biggest losses, with City’s losses of £197million making more than half the Premier League deficit. Champions League winners Chelsea have cost their owner Roman Abramovicc a staggering £819 million of his personal fortune.

But, whatever be the condition of the clubs, players are getting more money than ever. Clubs in England’s top football league paid some 70% of their income on salaries for the first time, unveiled the report.

Chelsea topped the salary charts with £191million, followed by Manchester City, who paid £173 million as wages. Total wages across the Premier League rose by £201 million (14%), which is equivalent to more than 80% of the £241 million increase in club revenues that season, giving a final salary bill of £1.6 billion.

The Deloitte report says that control of wages “continues to be football’s greatest commercial challenge”. Alan Switzer, director in the sports business group at Deloitte, said, with 70% wages to revenue ratio “it’s very difficult to make an operating profit.”

Meanwhile, of the “big five” leagues - England, Germany, Italy, Spain and France - all but Ligue 1 in France saw growth. Total collective revenues for the five leagues rose by 2% to 8.6 billion euros (£6.88 billion).

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