SAINTS may have taken a massive financial hit after relegation from the Premiership but are joining a league in which business is on the up.

The Deloitte report shows Football League clubs' revenue increased by seven per cent to £440m for 2003/04, with total attendances across the three divisions also up seven per cent to 15.9m.

There was a decrease in the total spent by clubs on wages and salaries by nine per cent from £228m in 2002/03 to £208m in 2003/04, which was a first fall seen in the second tier of English football since the 1998/99 campaign.

The Coca-Cola Championship saw a large overall improvement in its wages/turnover ratio from 89 per cent to 72 per cent, while a fall of seven per cent in players' earnings saw the total player wage bill of England's second tier drop to £138m, from £149m in 2002/03.

Saints will lose an estimated £15m this season following their relegation but clauses in players' contracts means they will halve their salaries to bring them more into line with a Championship club than a Premiership club.

They are already around £2m down on season ticket sales with the Early Bird discount scheme having pulled in 9,000 renewals compared to 14,000 last term.

Football League chairman Sir Brian Mawhinney welcomed a "positive" annual review of the game's finances but insisted the fight would continue to ensure long-term stability for their member clubs.

And Henk Potts, of Barclays Stockbrokers, believes it is evidence of how clubs outside the top flight are, in general, now taking a much more prudent approach than before the collapse of the TV deal with ITV Digital.

"The smaller clubs are still seen as feeder clubs and are the ones that are at the forefront of trying to reduce their costs in running a viable business plan, and that is now what we are seeing from them," reflected Potts.

Mawhinney believes more English clubs are now investing in bringing homegrown talent through - Saints being a prime example, having invested so heavily in their academy.

In 2004/05, Football League attendances continued to grow and reached 16.4m - a 40- year high. Mawhinney added: "Fans now want two things from their club - success and being able to sustain themselves.

"That is part of the new realism."