Championship clubs rack up £1 billion debt figures reveal

Norwich went back up at the first time of asking. Credit: PA

Championships clubs are making an alarming collective loss, according to accountants Deloitte.

Teams in England's second tier now have a combined debt of £1.1billion, which is more than twice the annual revenue for the the 24 clubs in the division.

Deloitte believe this loss is 'alarming' - in 2013-14 the 24 teams in the Championship lost £247million between them, which is an average of more than £10millon per club.

To highlight this issue within the league, the only club who could boast of having net funds were Blackpool, who went on to finish bottom of the Championship in 2014-15 and their owners, the Oyston family, have received constant criticism of how they run the club.

The dream of reaching the Premier League is seeing clubs overstretch themselves in terms of player wages.

Last year clubs spent more than £500million on salaries for the first time - an increase of 12% from the 2012-13 campaign.

Second-tier clubs were losing money on wages alone, shelling out 105% of their revenue on their talent.

Only three clubs had kept their wage spend below 70% of their overall revenue and the same number of clubs had a profit to show for their endeavours.

Blackpool were the only club to boast net funds. Credit: PA

Despite this overspend, 2013-14 was the first season in which no club were subject of insolvency events, which Deloitte believe points to that fact that Financial Fair Play rules are having an impact.

The division is being propped up by the parachute payments made to clubs relegated from the Premier League.

Eight clubs received the £57million payments in 2013-14, a salvation following relegation from the top flight.

Despite this added income for former Premier League teams, Bournemouth won the division and Watford finished in second place in 2014-15.

Players can even afford crowns in the Premier League. Credit: PA

The reason clubs are willing to spend is to gain promotion to the Premier League where the riches are becoming obscene.

A new TV deal right deal starting in 2016-17 will be worth more than £5.3billion to the league.

This will allow the lowest club in the Premier League to take in around £85million, Deloitte predict.