Total wages in the Premier League have exceeded £1bn for the first time as England’s elite football clubs take advantage of extra TV rights revenue in a scramble for talent.

Top of the salary league: Chelsea, seen in action in the FA Cup final against Everton, spent the most on wages at £172m

Their financial advantage over rival European leagues is set to narrow, however, because of sterling’s decline against the euro and the incoming 50 per cent tax band for top earners, according to Deloitte’s annual review of football finance.