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Tyne Talk

Wage Bills Rise by 38%

8 years ago
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A new report has revealed that while revenue for European clubs went up by a sizeable 24% in the period 2007 to 2011, predictably wages have gone up even more.

The UEFA European Club Licensing Benchmark Report has revealed that in the same period wages increased by an unrealistic 38%.

When combined with overall employee costs, this has pushed up wages from 59% to 65% as a ratio to the overall revenue.

When net transfer costs are included that then takes the wages/transfers ratio of the revenue up from 62% to 71%.

Total revenue increased amongst the clubs by some 2.6bn euros between 2007 and 2011 but the net costs of transfers and wage bills increased by 2.8bn euros in the same period…and that is before you take into account another 1bn euro increase in other operating/financing costs.

An incredible 88 clubs revealed that that their wage bill alone, was more than their total revenue!

With the new broadcasting deals coming into play from next season, the Premier League initiative to agree spending controls is obviously aimed at trying to stop Premier League clubs feeling obliged to pass on the anticipated extra £30m or so to players, with agents knowing clubs have that extra money to tap into.

With history telling us that in trying to compete, clubs would then end up building up even bigger debts despite the increased revenue coming in.

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