Posts Tagged wages
£174m
Posted by Peter Webb in Bet Angel on June 11th, 2011
The Deloitte football report is out and makes continued interesting reading. The current austerity in the western world doesn’t seem to have affected football. Their finances are as bad as ever but the players get paid more in a week than a group of the fans could reasonably expected to earn in a year. The clamour for ‘talent’ continues unabated.
There are some very interesting bits in the report. Manchester United spent 46% of its revenue on pay, but rivals Manchester City splashed out a massive 107%. Top of the wages league is Chelsea with £174m, last years wage figures are shown in brackets.
- Chelsea – £174m (£167m)
- Man City – £133m (£83m)
- Man Utd – £132m (£123m)
- Liverpool – £121m (£107m)
- Arsenal – £111m (£104m)
The report noted a couple of key findings that I found interesting.
“The problem is with the middle tier of clubs, those who are neither chasing a Uefa place or facing relegation,” said Mr Jones. It appears the wage bill in these clubs is unsustainable in relation to the revenue they generate. Overall the 92 league clubs as a whole lose money on their day-to-day operations – and at the pre-tax level, losses have continued to grow, hitting £600m in 2009-10. For some more info and graphs visit the following link: -
Bit of a Kop out
Posted by Peter Webb in Bet Angel on April 17th, 2010
No surprise to see Tom Hicks and George Gillett exit stage left at Liverpool. Struggling to refinance their debt they have to find a viable exit, but it’s a terrible time to sell. Liverpool are heading for a poor season and the attractiveness of the club must have been dented by their lack of success, not only this season but in prior seasons also. For the amount of wages they pay they really should be performing better, but I am sure that the constant chatter in the background about everything other than football hasn’t helped.
The problem Liverpool face is that money talks big time in football now and if they can’t get any success this season they will have less to spend next year, unless they find a massive benefactor. If they spend less, the correlation of money to success is so high in this division that they will continue to struggle. When I did some research on the funding of clubs the correlation of wage bill to league position was staggering. It has proved a very reliable predictor this year in the promotion and relegation markets. It’s a sad fact, but unless Liverpool find success or a billionaire with loose pockets , they could find themselves slipping out of the big four bracket for some time. The only solace is that thanks to the recession and tighter FIFA rules it’s unlikely that many new Chelsea’s or Man City’s will appear in the next few years to supplant the incumbents. It’s going to be an interesting end to the season, one which start to determine next season before it’s even started.
I appear to have forgotten my wallet