Transfer Costs and Increased PL Revenues

fez

fez

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With the huge increase in money that even the bottom clubs will get, how do we think this will effect transfer spending and the general cost of players.

One of the large costs associated with a top player is his wages over the life of a contract. You probably won't sign many players for £30m and pay them £50,000/week. For the traditionally rich clubs thats not an issue as they are getting the top prize money and have a large revenue stream external to the tv money. For the smaller clubs though, this could start to become an issue.

Lets say Leicester have just won the league and sign a few players for 20-30m each. How much do they pay those players? How do they maintain a manageable wage structure if they suddenly pay these new players 2-3 times the salaries of those already at the club?

What happens when a club fall out of the PL and their wage bill is just unsustainable.

How do clubs sell players that are not performing or surplus to requirements. You can take a hit on the transfer fee but as various clubs have found, its not the transfer fee that is a problem, its their wages. Plenty of players will sit on the bench for a few seasons rather than take a huge pay cut to leave.

So, what do you think is going to happen this summer with all the new money every club will have. Will spending be insane or will it be a gradual increase over the coming years as clubs see how their finances can manage in the medium-term.
 
Well if you're in danger of getting relegated, don't make stupid contracts or at least put in clauses for cuts in salary.

Parachute payments help as well.

I don't see why it is any different to before. Just with a bit more money.
 
I seem to recall seeing an article where last season's spend was about £1.1 bn in the EPL.( and roughly 75% spent in the summer)

With three new managers at top teams that underperformed plus the likes of Leicester and Spurs even more keen to protect their lofty positions, clubs could easily top that just this summer

Salaries are still going to be insane as above the contracts have to be better writtrn for those clubs potentially at risk
 
This will be interesting in the years to come as the cost for purchasing the rights to watch the EPL is increasing for every country; for example SKY NZ used to pay around $600K NZD for the rights for 3 years, then the last 3 the rights cost $3m and now NZ won't have the EPL as BEin paid $10m for the rights trying to get a super-asia setup and failed... IF the rights keep on increasing and the discontent with general expensive Sky sort of setups, football should be prepared for potentially devastating changes in revenue should the media cash cow disappear!
 
Another interesting stat was that the revenue made from the first 1 1/2 live games next season will be more than the entire revenue from the first EPL season (not sure if its valid but I think the Times said it recently)
 
Another interesting stat was that the revenue made from the first 1 1/2 live games next season will be more than the entire revenue from the first EPL season (not sure if its valid but I think the Times said it recently)

Ticket revenue you mean?

£10.2m in domestic TV revenue per game. (a little difficult to include international rights as they show many more games)

Ticket revenue must surely be more than £15m in a season?

http://www.bbc.co.uk/sport/football/31357409

edit:

Yep, the big clubs earn much more.

http://metro.co.uk/2015/01/24/manch...nchester-city-and-liverpool-combined-5033662/
 
Ticket revenue you mean?

£10.2m in domestic TV revenue per game. (a little difficult to include international rights as they show many more games)

Ticket revenue must surely be more than £15m in a season?

http://www.bbc.co.uk/sport/football/31357409

edit:

Yep, the big clubs earn much more.

http://metro.co.uk/2015/01/24/manch...nchester-city-and-liverpool-combined-5033662/

TV revenue

ie 191m for 5 years from 92-97 is approximately 1m per "live" weekend (or approx 40m a season)
(im not going to work out how many live games they showed then compared to now, but that would be more accurate)

as apposed to 5bn over 3 years, £1.7bn a season, or £40m~ per weekend

Very rough calculations so I may well have made a mistake but thats what I think they were referring to
 
If the concern is about money shifting to players (wages rather than transfer fees) then I think that will just mean contracts being handled differently e.g. shorter contracts (since transfer fees become relatively less important) or performance related clauses such as pay cuts upon relegation etc.

Overall I think the main impact of the new deal should be that more EPL clubs can compete with European clubs in the transfer market. In other words clubs in the bottom half should now have the same spending power as all but the most elite of competition abroad. They may still have the 'prestige' issues due to their lack of trophies but they will at least be able to offset that by offering big wages to get Carlos Kickaball to come over. This in turn should give the potential for stronger squads i.e. the majority of clubs being able to fill up their bench with pros rather than needing to rely on youth players etc.
 
TV revenue

ie 191m for 5 years from 92-97 is approximately 1m per "live" weekend (or approx 40m a season)
(im not going to work out how many live games they showed then compared to now, but that would be more accurate)

as apposed to 5bn over 3 years, £1.7bn a season, or £40m~ per weekend

Very rough calculations so I may well have made a mistake but thats what I think they were referring to

Yep sorry. Completely misread the entire post.
 
All the Premiership clubs are in the top 30 richest clubs in the world i think, that says it all really. Purchasing power is ridiculous compared to their European counterparts.
 
Certainly not based on the latest published rich list from Forbes less than a month ago; only 7 of the top 20 will be playing in the Premiership next season so even if positions 21-30 were all EPL teams it would still fall short.

Obviously once the new TV deal gets into the figures things may shift a bit, I would guess that will be published in 2018.
 
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