Dribble Down Economics

 

If you were to calculate the amount of money floating around in the Premier League in this day and age, the sum would be a scary one. From lucrative TV deals, sponsorship, ticket prices and merchandise sales, there is more money in the game than ever before and this shows no sign of slowing down.  Most of this money is finding its way into ever more increasing player wages and fans have become numb to being surprised at the amount of wages being offered to star players.

Let us just start with one scary figure….the total wage bill for the Premier League in the 2014-2015 season was just a shade over £1,600,000,000. That is 1.6 billion pounds….enough to buy 17 million shares in Apple, buy three football stadiums and still have change or give 22p to every person in the world. Players earn more in a week than many fans will earn in ten years of work and the scale of millionaires the game is making is beyond comprehension. If fans were to take a closer look at the picture and see just how much that reserve goalkeeper is earning for sitting on the bench, or that striker who plays 5 times a season, it is truly beyond believe. Clubs seemingly have money to waste and whilst that is all well and good, when fans are paying through the roof for TV subscriptions, ticket prices and merchandise, it just doesn’t seem fair.

Let us take a look more closely at what this money can bring. Manchester City are notorious as big spenders and have several players, including the likes of Ivorian Midfielder Yaya Toure and striker Sergio Aguero, who earn upwards of £12 million a year. In fact, their wage bill that season was £168 million which netted them second place and a spot in the Champions League. A cost of almost £2.1 million per pound earned! Did these see the club make a profit? Of Course  not….

But does money buy success. The highest wage bill in the league was £198 million and guess who that went to? Chelsea of course who took the title in that 2014-2015 season. In fact, the top 3 teams in the league were the top spenders and extending that the top 6 were all the highest spenders on wages. Barring Tottenham who finished ahead of Liverpool, despite Liverpool’s wage bill being £60 million higher, it just goes to show the teams paying the bigger money are reaping the rewards.

Does the same rule apply to those who struggle? The lowest wage bill in the 2014-2015 Premier League was Burnley, and sure enough….they were relegated in 19th. The £50 million spent by Hull City was the third lowest total in the league and sure enough they went down too. QPR splashed out £60 million and were relegated.  Leicester, Newcastle and Crystal Palace all surived despite spending less than QPR on wages. But the differences, in relative terms, are small and the league table doesn’t lie.

The clubs who pay bigger, finish higher and until a cap is introduced or some sort of Fair Play initiative that is more effective than we have now,  this will always tend to be the case.

If you love this sort of way of looking at football then check out Dribble Down Economics  

 

 

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