Last season Preston spent 108% of their revenue on player wages. This naturally meant they spent all of their revenue on player wages plus a further 8% on top which they didn't have to spend. However, this is a drastic reduction of 132% spent on player wages from Derek Shaw's last season in charge.
This figure is set to reduce significantly with many of the high earners either out of contract or expected to leave for a fee this summer but Preston have to aim for a target of around 60% fo their total revenue for wages.
All football league clubs adopted this approach in principle at the weekend with League Two clubs bound to spend only 60% of their turnover on player wages. League One are set to adopt a similar figure followed by the Championship to start in 2012/13. This is to prepare for a shortfall in television cash as the new deal sees a reduction of money coming into the coffers of League clubs.