A dream doesn't become reality through magic. It takes sweat, determination and hard work.

Friday 19 April 2013

What are clubs paying in wages?

undefined

By Eurosport | The Rundown 

Accounts from the Premier League clubs in 2011-12 show that the majority made a loss despite the imminent arrival of Financial Fair Play.
Manchester City spent an astronomical 87% of their turnover keeping players in Bentleys and champagne - neighbours United spent just 51% of theirs on wages - and top the wage league by some margin, if not the Premier League.

There are great success stories, with the lowest spenders on wages Swansea and Norwich successful on the pitch, but thrifty Wolves may have paid the price for a similar approach as they could go down to the third tier this season.
And there are the horrorshows of QPR and Blackburn...
So how did your club pay in wages in 2011-12? Scroll down to the bottom to see the chart.
Manchester City
£202m (up from £174m) - 87% of turnover
Loss - £99m
City's wage bill is £40m higher than that of neighbours United despite having £90m less income - this backing from Sheikh Mansour won them the Premier League last season (just). However they are confident of complying with FFP next season.
Chelsea
£173m (down from £190m) - 66%
Loss - £4m
Losses fell significantly from £78m in the year before as Chelsea cut back on wages and sold some fringe players, bringing them closer to the FFP regulations. However the amount loaned from owner Roman Abramovich increased by £79m to a staggering total of £896m over nine years, although the club itself is protected from this.
Manchester United
£162m (up from £153m) - 51%
Loss - £5m
United's proportion of wages paid to income is one of the lowest in the top flight, a result of their huge £320m turnover, but they remain £420m in debt to owners the Glazer family - with £50m added on in interest last year. They also paid a £10m dividend to the Glazers last year and £3m in management fees.
Arsenal
£143m (up from £124m) - 58%
Profit (before tax) - £37m
Arsenal's spending on wages has significantly increased, but they continue to be criticised by fans for putting frugality above success on the pitch.
Liverpool
£119m (2011 figure omitted) - 70%
Loss - £41m
Profligate spending under Kenny Dalglish saw Liverpool amass £87m of debt - with owners Fenway Sports Group having loaned them £47m - but the wage bill has come down and John W Henry believes FFP will benefit them.
Tottenham Hotspur
£90m (down from £91m) - 63%
Loss - £7m
When they realise their dream of building a new stadium, matchday revenue may jump - it is just a third of that of North London rivals Arsenal at present - and eventually allow them to compete for titles. Have £70m of debt, but considered a well-run club.
Aston Villa
£70m (down from £83m) - 87.5%
Loss - £8m
Randy Lerner was a few years ago hailed as a model owner - now, as Villa flirt with relegation and rely upon young players, the fans' patience is running thin.
Sunderland
£64m (up from £61m) - 85%
Loss - £32m
High levels of debt (£84m), high wages and the looming possibility of relegation saw Martin O'Neill sacked and Paolo Di Canio installed by American owner Ellis Short.
Newcastle United
£64m (up from £54m) - 69%
Profit - £1m
The sale of Andy Carroll saw Newcastle make a profit while on the pitch Alan Pardew's men almost made the Champions League. Businessman owner Mike Ashley cleared the existing debt and loaned £129m to it himself. However this season has been less impressive and £27m has been spent on players.
Everton
£63m (up from £58m) - 78%
Loss - £9m
David Moyes's Everton have long been considered over-achievers on meagre resources, managing to finish seventh last season. Getting into the Champions League group stage - they are sixth in the Premier League with five games left - would boost their financial clout hugely.
Fulham
£62m (up from £58m) - 78%
Loss - £18m
Owner Mohamed Al Fayed effectively wrote off the £212m he was owed by the club, but £5m profit in 2011 became a substantial loss in 2012 due largely to a reduction in funds from selling players.
Queens Park Rangers
£58m (up from £30m) - 91%
Loss - £23m
The cash from winning promotion to the Premier League has been squandered on spending sprees from a succession of managers - although it did see them stay up, narrowly, in 2012. Tony Fernandes's sanctioning of Harry Redknapp's January splurge - not included in these figures - has seen his loan investment rise to £92.5m, with another £15m borrowed from the bank.
Bolton Wanderers
£55m (down from £56m) - 85%
Loss - £22m
Wanderers' losses compared with the previous year fell but they remain heavily in debt - they owe owner Eddie Davies £137m, a loan which gathers him £5.5m of interest a year - and they have looked to spend their way back to the Premier League. They currently sit just outside the Championship play-offs.
Stoke City
£53m (up from £47m) - 75%
Loss - £10m
After consolidating in the top division, Stoke spent on big names such as Peter Crouch and saw their percentage of turnover paid out in wages balloon to 75%. With just £14m of debt, however, they are not looking in a bad way, especially if they avoid relegation.
West Bromwich Albion
£50m (up from £39m) - 75%
Profit - £1m
Sensibly run by chairman Jeremy Peace as the club moved between the top two tiers of English football. Basically debt-free and finished in the top half of the table last season despite having one of the lowest wage bills.
Blackburn Rovers
£50m (static) - 93%
Profit - £4m
The sale of Chris Samba and others saw Rovers make a profit, but Venky's - who have loaned £21m interest-free to the club - have taken them to the brink of relegation to the third tier after hiring and firing a succession of managers.
Wigan Athletic
£38m (up from £51m) - 72%
Profit - £4m
The club has been freed of £48m of loans from owner Dave Whelan as the tiny club from a rugby league town continues to compete with the big boys, making the FA Cup final this season and with a similar chance of survival (again) to Aston Villa, Stoke and Sunderland. Owes the bank £12m, but that is down from £21m.
Wolverhampton Wanderers
£38m (static) - 63%
Profit - £2m
No debt and with £13m cash in the bank, Wolves seem an admirably well-run club. However they are now in grave danger of relegation from the Championship.
Norwich City
£37m (up from £18) - 49%
Profit - £16m
The Canaries paid off their debt with the spoils from Premier League promotion and managed to finish 12th in the top flight despite having the second-lowest wage bill. Very healthy.
Swansea City
£35m (up from £17m) - 54%
Profit - £17m
Finished 11th last season with the division's lowest wage bill and made £5m in compensation when Liverpool poached Brendan Rodgers. With a supporters trust which owns 20% of the club and having claimed a first ever trophy under Michael Laudrup this season - and again impressing in the league - a model for how a football club should be run.
undefined

No comments:

Post a Comment