YORK City have denounced suggestions that lower League clubs should return to a north-south split. The recommendation was made by Gerry Boon, author of the report into football finances by accountants Deloitte and Touche, who reckons a return to the post-war system could generate up to £100,000 a season.

His claims come in the wake of the collapse of ITV Digital, which has forced clubs to take action to make up for the loss of cash.

However, City chief executive Keith Usher believes a regional split would hinder more than help clubs as there would be a reduction in competition.

Boon made his suggestions after analysing the finances for 2000-01, before there had been any impact from the ITV contract.

"We raised this issue in 1997 but there was a lot of anger against it," he said.

"However, most of the other recommendations at the time have been implemented and people are bringing it back on to the agenda.

"The issue is not about saving on travelling costs, it is about looking at ways to generate significantly more money.

"The games would generate more interest because there are more derbies and more travelling fans.

"In 1997 we estimated each club could gain £50,000 a year if they regionalised the League. Now we are probably looking at £100,000."

However, Usher said clubs' cash flow took into account more than just travelling costs and derby gate receipts, while he said the reformed promotion and relegation issues would mean many more matches becoming meaningless.

He explained if there were regional divisions, there could effectively be only one promotion place up for grabs per division.

"Unlike now (when there is promotion to Division Two from Division Three), you wouldn't have promotion from the north to the south," he said. "There would be 48 clubs in the regional divisions vying for just three promotion places (to Division One).

"Promotion and relegation issues would be reduced and many more matches after Christmas would become meaningless for clubs in mid-table.

"From a competition point of view it would be better to remain as we are, and overall it is felt it would not be beneficial financially to have regional divisions."

According to the Deloitte and Touche figures, Manchester United recorded the biggest profit, highest turnover and lowest wage-turnover ratio, despite the fact their wage bill topped £50million, as did Chelsea's. Meanwhile, Liverpool's three cup successes saw the Reds move from 78th in the profit-loss rankings to second.

Some 16 clubs spent more on wages than they achieved in turnover, Fulham topping this list as Mohamed Al Fayed funded their rise to the Premier League.

Meanwhile, the trend of buying players from outside England continued, with £870million being spent on non-English players in the last six years.

"Football is a fast moving industry and the past decade has seen significant challenges," said Boon.

"In the face of those challenges, clubs and governing bodies have seized opportunities to be dynamic and to grow and develop.

"And it's not just in the Premiership. In 2000, the Football League had a higher income than the top divisions of all non-big five leagues around Europe.

"It also carries the biggest single club game in the world - even if the winners are relegated from the Premiership the next season.

"In May 2002 the Division One play-off final was worth £27million to the winners."

Updated: 11:03 Saturday, June 29, 2002