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A look at Premier League Finances – Wages

Yesterday we looked at the match day revenues of clubs in the Premier League and the huge gap between the big clubs like Manchester United and Arsenal and the smaller clubs like West Brom and Fulham.

Clubs with the highest gate and match day revenue should be able to afford the best players and they can afford their huge salaries.

As you can see, some what we would call in the U.S., small market teams, are seeing their wage bill cover chew up a dangerously high percentage of their income (turnover).

Team                                           Wages                   Wages as % of turnover
Arsenal                                    £101.3                               45%
Aston Villa                               50.4                              66.7%
Blackburn                                39.7                               70%
Bolton                                         39                                   66%
Chelsea                                     149                                   68%
Everton                                    44.5                                 59%
Fulham                                    39.3                                  73%
Hull                                            6.9                                    77%
Liverpool                                N/A
Man City                                 54.2                                  66%
Man United                         121.1                                  47%
Boro                                       34.8                                    73%
Newcastle                           74.6                                     74%
Portsmouth                       54.7                                        78%
Stoke                                    11.9                                      106%
Sunderland                        37.1                                      58%
Spurs                                   52.9                                       46%
West Brom                        21.8                                        80%
West Ham                         44.2                                        76%

By comparison the national Football League spends between 57- 59.5% of its revenues on player costs.

Premier League teams in the 70% range cannot substain that. Either the club goes bust, or the team has to be sold to an owner with deep pockets

Data Source:  The Guardian