Whilst an apple turnover with a scoop of vanilla ice cream is a wonderful thing, it is not going to help you understand turnover in a financial sense. Anyway, no matter what the number is, the term wages in this context refers simply to the total of all the club’s staffing costs. Indeed, more recent data showed that the highest wage bill in the Premier League was a massive £355m at Manchester City, with the likes of Man United and Chelsea not too far behind. Add on inflation, the fact that many clubs have much larger squads, as well as younger players on not insubstantial salaries, and the high salaries of the top managers, coaching staff and support teams, and the figure at many clubs is often much higher. And that is just an average figure, from 2019, based on the core playing staff. If we say that each of the 20 teams has 25 players in their first team squads, that means they are spending around £80m each on wages annually. That average has almost certainly risen since then and is based on a first team squad member. Naturally this total is dominated by the earnings of the players, with the average Premier League salary estimated to be just over £60,000 per week back in 2019. With regards to football and this article, the wages means the total wages of the entire club. WagesĮven those lucky enough to be either too young or too old to be overly concerned about wages will probably be familiar with the term. Whatever your understanding of the phrase, let’s start with the very basics by looking at the three key terms individually and explaining what they mean, both generally and, if there is any difference, specifically in relation to football. What’s more, when the phrase is used in relation to football, it means something slightly different to its conventional business usage, so all you accountants and business owners should perhaps not get too cocky. Of course, that doesn’t help the majority of people who have never studied business, finance or accounting, or worked in those fields. That said, it is relatively simple and so even if the only real acquaintance you have with wages is the knowledge of how they seem to disappear so quickly, and turnover is something your Gran occasionally bakes, we’re confident that you’ll be fully up to speed by the end of this “fascinating” piece on footballing finance! The Key Terms ExplainedĪnyone with a very basic understanding of business terminology will understand what wages to turnover ratio means because it is a self-explanatory term in many ways. So if you are unsure what the term “wages to turnover ratio (WTR)” refers to, you are certainly not alone and we suspect there are plenty of so-called expert pundits who do not fully understand it either. Unfortunately lots of terms get bandied around without much explanation or understanding. And that is why terms such as “wages to turnover ratio” or “net win and sustainability rules” stimulate almost as much debate in the pub as VAR, the nocturnal leisure pursuits of the referee and why your club have just signed yet another useless striker. Love it or loathe it, or hopefully just accept it, the “beautiful game” is now dominated by finance. Football used to be a sport and for many it still is but at the top levels of the professional game, it is now undeniably a business.
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