Massive new television deals, combined with an almost insatiable public demand, has led to ``football plc'' being promoted into the billionaire league in the City.

But according to the latest annual report from accountants Deloitte & Touche, top clubs like Manchester United are soaring further ahead of those in the lower echelons of the Nationwide League.

Gerry Boon, the head of Deloitte and Touche's football industry team, warned that club chairmen urgently need to get the game's finances back onto a firm foundation.

Spiralling wages, transfer deals and television revenue meant that football had never been more awash with cash, the report said.

But without proper management, the future of some clubs - especially those desperately investing to try to get promotion to the Premiership - could become unsustainable.

Mr Boon said that for the first time, the income of England and Wales' 92 professional league clubs had broken the £1 billion barrier last season.

By 2001-02 Deloitte & Touch predicted that Premiership and Nationwide League clubs' turnover would reach £1.3 billion and £500 million respectively.

The last available figures, taken from the accounts of 83 clubs, revealed that in 1998-99 income rose by 10% to £951 million, while the latest round of broadcasting rights will mean that even that figure will look like small change in years to come.

One stark contrast highlighted by the report, however, was that the 20 Premiership clubs made a combined operating profit of £69 million - the same total collectively lost by 72 Nationwide League outfits.

And while turnover rose by an average of 10% in the professional game, players saw their pay packets bulge by an extra 18%.

Since the 1993-94 season wages in the Premier League have risen by an average of 30% a year, while rises in lower leagues have generally been less spectacular.

Spending on transfer fees also massively increased, by £89 million to £316.9 million in 1998-99.

Mr Boon said: ``Football has come of age commercially with another impressive year. But clubs continue to spend the increases (in income) on transfer fees in particular, and wages.

``With the recently agreed broadcasting rights deals set to bring £2.4 billion of revenue into the game over the next four years, the challenge for clubs will be to manage their money sensibly and ensure that some of it goes on strengthening business infrastructure rather than straight into the players' pockets.''

The report said that 80% of all clubs now have a wage bill exceeding two thirds of their income, compared to 60% in 1995-96.

Only four clubs spend less than half their turnover on wages.

Mr Boon said: ``These are worrying signs. Wage restraint, or more importantly managing the costs against incomes, is now more critical than ever before.

``Provided a club's board and management team is approaching the task in a sensible, business-like manner, then fans, journalists and everybody else involved in club football should seek to support the chairmen and managers in this increasingly difficult task.''

According to the report, the average Premier League club is now five times larger than its Division One counterpart.

Because of the vast rewards offered by the Premiership, many clubs are spending huge amounts in bids for promotion to it.

Mr Boon warned: ``Too many clubs over-extending themselves in pursuit of one of the coveted spots in the Premier League cannot result in a healthy situation for football.

``Wages in the lower divisions are far too high for long term financial strength and survival. A gamble to break into the Premier League may cripple clubs with long term commitments to expensive players if it fails to pay off.

``We are seeing polarisation within the leagues where top paying clubs are able to outpay the low payers four and a half times over.''

He hoped there would be a ``trickledown'' effect associated with the new deal for broadcasting rights.

Mr Boon explained: ``The shot in the arm from the new TV deals paradoxically presents many clubs with a predicament. Can the clubs hold onto the windfall or will it trickle through their fingers into the bank accounts of overseas clubs or the pockets of the players?

``The new TV (and Internet) deals offer Football League clubs a once-in-a-lifetime opportunity to stabilise their financial condition.

``It will no longer then be quite such a desperate struggle to climb out of Division One - and remaining there might realistically (and sensibly for many) represent the pinnacle of ambition for a large number of clubs.

``We just hope that this opportunity is taken - we fear it will not be.''