Accountancy firm DeloitteTouche examined the operating profits of the 92 league clubs and found wages were growing.

Wrexham outperformed other clubs financially

Wrexham proved to be one of the best off-field performers, with pre-tax profits of �211,000 in 1998.

This compared well with Division Three sides Cardiff City and Swansea City, who were both in the red.

Cardiff showed losses of �454,000, while Swansea's books were even worse, with a figure of �458,000.

This reflected their poor respective finishing spots of 21st and 20th in the 1997-98 campaign.

Wrexham finished high up in Division Two in the same season and yet the club's turnover was considerably less than bigger clubs, making its profit all the more impressive.

Good attendances

Cardiff City's turnover reached �1.59m (excluding transfer fees), buoyed by good attendances. Swansea were slightly worse off, with figures of �1.023m.

Promotion for Cardiff and a new home for Swansea could brighten the fortunes on and off the pitch for both teams.

Man Utd have lucrative TV deals

John Antoniazzi, of Deloitte Touche in Cardiff, said the issue of widening costs was becoming ever more serious and he warned clubs must "break the cycle" of buying into success.

"The scale of adjustment needed is massive," said Mr Antoniazzi.

"It comes back to football's classic dilemma - success is measured by silverware, silverware is won by players, the best players win the most silverware and the best players always cost a little bit more.

"Football has to break this cycle, perhaps the realisation that a sustainable future depends on building a business."

Soaring losses

Premiership clubs recorded pre-tax profits for the first time since the 1994-95 season, in contrast to soaring losses in the Nationwide League of almost �53m.

Manchester United generate more on one match day - �1.4m excluding television income - than 22 of the Football League's hardest up clubs.