SAINTS chairman Rupert Lowe's financial strategy has been praised by a leading sports business group.

Lowe has always run the St Mary's club along prudent lines, championing a more cautious approach rather than sanctioning massive spending sprees.

And he has not been alone.

Premiership clubs have tightened their belts by holding back on wage increases and slashing transfer fees to ensure they do not go into financial meltdown.

A report released today by the sports business group at Deloitte has revealed total wages and salaries in the Premiership increased by only eight per cent to £761million in 2002-03 - the latest period for which definitive figures are available - as opposed to an average annual rise of 25% over the previous decade.

In addition, total transfer fees dropped by a staggering 42% on the previous season from £323million to just £187million.

Estimates suggest Roman Abramovich's £120million spending spree at Chelsea last season will send the figure for 2003-04 back to around £260million, although that is still well below the peak of £364million in 2000-01.

Paul Rawnsley, of the sports business group, said: "Having reported wage increases of 20, 25 or 30% every year, for the figure to suddenly come down to 8% is a very significant change.

"It doesn't mean that it's a crisis or anything like that, it's a certain amount of tightening of belts and clubs in general striking a better balance between revenue generation and costs.

"It's a positive thing, but 8% is still a pretty decent pay rise.

"But clubs and club boards and also supporters are now far more savvy and realistic about the football business than they have been in the past.

"Somebody coming into the game and throwing in excess of £100million at it is not the reality for most clubs.

"The majority are generating more income than ever before, but they're being a little bit more careful in the commitments they make."

That certainly sums up Lowe's approach at St Mary's.

The Deloitte's report, which precedes its Annual Review of Football Finance, to be published later this year, reveals that all but four of the 20 clubs who fought out the 2002-03 Premiership campaign - Leeds, Sunderland, Bolton and Fulham - made an operating profit.

However, just five - Manchester United, Liverpool, Arsenal, Newcastle and Birmingham - recorded a pre-tax profit.

Total turnover for the season amounted to £1.33billion with Manchester United leading the way on £175million. Saints were around the £38m mark.

Rawnsley continued: "It's a fairly healthy picture.

"Everything is relative, but when you compare the Premier League clubs with their European counterparts in terms of revenue generation, wages-to-turnover ratio and operating profitability, they compare very favourably.

"In that respect, it's something to be proud of. In financial terms, they are the champions of Europe."

The relative financial health of the top-flight clubs and the war chest Abramovich seems certain to hand new manager Jose Mourinho means English clubs could be well placed to take advantage of a slow transfer market this summer.

Deloitte partner Dan Jones explained: "The player transfer market has peaked in terms of overall value, but not in terms of values for the big stars.

"We expect there will be a few blockbuster deals involving Premiership clubs and maybe even a few around continental Europe.

"However, that won't obscure the main picture of a trickle, not a flood, of deals over £5million."

Mr Rawnsley added: "It is important to understand that English football's competitive advantage does not just derive from wealthy individuals providing deep pockets.

"As a direct result of Premiership clubs' improved business discipline, this summer many are better placed than their European rivals to attract the best playing talent."