We wrote about the €300 million mark, and what it means to European clubs. Now we take a look at the wages to turnover ratio of the best clubs on the continent.
Players are the most valuable possession of every club. So, what chunk of the superclubs’ turnover goes into the players’ pockets?
50% or more
Of the 20 clubs that made the 2019 Deloitte Money League, just 3 have wages to turnover ratio of less than 50%. Real Madrid has a ratio of 48%, which is great when you know that they give €319 million a year on wages.
Tottenham Hotspur are way behind them with only 39% given on players’ wages. But with the construction of their new stadium finished, and with no need to invest in that, Daniel Levy will surely splash more cash on salaries.
Schalke 04 gives 38% of their turnover on wages, and they also have the lowest wage budget of all 20 clubs on the list. They spend „only“ €109 million on wages.
But the other 17 clubs spend more than half of their turnover on salaries. The most extreme example is Everton. They spend €160 million on wages, which is 85% of their turnover. Roma gives 78% of their turnover to players, and West Ham gives 71% to footballers.
Five clubs spend between 60% and 70% of their turnover on wages, and another 9 spend between 50% and 60%.
That gives you the idea of what’s the most important thing in the football industry these days. You need to spend money on quality players in order to boost your budget. Because they will earn you better results, and therefore more prize money and more money from TV deals. But also popular players give you the chance to make a global brand out of your club, to get big companies to sponsor you, and to sell your merchandise across the world.
The more you pay your players, it’s more likely you’ll suceed. In both football and financial way.