Football"s top clubs warned over losses of 1.3bn

Sort it out! Football's top clubs warned over meltdown after combined losses of 1.3bn in just one year across Europe

Premier League clubs have been warned to sort out their dire finances.

At UEFA's summit on financial fair play, it was revealed that the total losses across Europe's top-flight clubs was 1.33billion in 2010 – up from 1bn.

General secretary Gianni Infantino said: 'This is the last wake-up call. This red trend has to be inverted very, very quickly to save European football.'

Rich list: Manchester City have spent big to assemble their squad

Rich list: Manchester City have spent big to assemble their squad

UEFA's latest club licensing report has revealed overall losses from the leading leagues around the continent are up a massive 36 per cent in a year.

This was despite rising revenues
totaling 10.5bn for top-tier European
clubs – an increased income of 6.6 per cent.

The European governing body said the findings of the club licensing benchmarking report will take on 'an increasing significance' with the financial fair play rules starting to be measured from this season and implemented for European competitions in the 2013-14 campaign.

A UEFA statement said: 'The need for financial fair play measures and strong governance is strongly emphasised by the report findings.

Expensive: Fernando Torres cost Chelsea a British record 50million

Expensive: Fernando Torres cost Chelsea a British record 50million

'Whilst the level of losses was one of a number of warning signs that confirms the need for football to act, there were some improvements with the 64 per cent percentage of income spent on employee costs, representing a small decrease on the previous year after four years of rising percentages.'

UEFA said there were some positive changes including a 6.6 per cent rise in overall income, a small drop in the proportion of clubs' revenue going on players' wages, and an increase in the number of home-grown players in the Champions League.'

UEFA's research showed that richer and more successful clubs were more likely to spend and lose money.

Of more than 200 clubs playing in the Champions League and Europa League two years ago, 65 per cent spent more than they earned.

Three out of every four clubs earning more than 42m annually also recorded a loss.

Pressure: Jean-Michel Aulas (right) wants changes to be implemented

Pressure: Jean-Michel Aulas (right) wants changes to be implemented

UEFA say clubs who overspend in an initial two-year monitoring period can be excluded from its competitions from the 2014-15 season.

Financial fair play (FFP) rules allow clubs to make a total loss of 4.2m in the first assessment period, or up to 37m if a wealthy owner makes a one-off donation to wipe out losses. UEFA will phase in tighter monitoring rules in future years.

UEFA acknowledged that 13 unidentified clubs, including several from England, would have failed its break-even tests on their 2010 accounts.

Sceptics fear over UEFA's willingness to take on big-spending clubs such as Premier League leaders Manchester City, whose Abu Dhabi owners funded a 195m loss for 2010-11.

UEFA's project was backed by Jean-Michel Aulas, the president of Lyon whose standing in France is threatened by PSG's cash-drenched revival.

'Tomorrow's paradigm (for clubs) must be built on building stadiums and building youth academies – tangible assets that can benefit football in general,' Aulas said.