The public companies which own Leeds United and Newcastle United yesterday declared their half-yearly profits, the St James's Park firm posting a drop for the six-month period to January 31st but Leeds Sporting plc announcing that pre-tax profits had risen from £11,000 to £1.87 million.

The Leeds chairman Peter Ridsdale struck a note of caution, however, warning that players' wages are now the key issue facing clubs. "While the outstanding success of our youth policy is filtering through to our first team, the future challenge, not only to ourselves, is to face up to the reality that transfer fees and wages must not be allowed to continue to grow at unsustainable levels.

"The management of Leeds Sporting are ready to take up the challenge, while recognising at the same time the need for continued success on the field."

Newcastle's profit was greater, despite a hefty drop to £5.6 million from £7.2 million for the same period the previous year. Freddie Fletcher, the chief executive, also stressed the importance of having a successful team. "Results on the pitch are the driver of the business."

Newcastle have been as good as guaranteed a place in Europe after UEFA confirmed that one of England's three entrants for the UEFA Cup must be from the surviving quartet in the FA Cup.

Tottenham Hotspur, who face United in a semi-final on Sunday week, have already qualified after winning the Worthington Cup.

Manchester United and Chelsea seem assured of top-three placings in the Premiership and Champions League berths, initially.