In many respects Championship wages are revealed to be an even bigger challenge than those in the Premiership according to the latest Deloitte review of football finance. The ratio of wages to revenue there is 88 per cent compared with 68 per cent in the top flight.
In many respects Championship wages are revealed to be an even bigger challenge than those in the Premiership according to the latest Deloitte review of football finance. The ratio of wages to revenue there is 88 per cent compared with 68 per cent in the top flight.
Over four years Championship wages have grown at double the rate of revenue growth as clubs aspire to reach the golden pavements of the Premier League. The 24 Championship clubs face a 25 per cent reduction in broadcast income from 2012-13. This week they are holding their annual meeting in Cyprus. Measures to control costs are top of the agenda.
Admittedly the ratio did reduce by two per cent in the Championship from the record high of 90 per cent in the previous season. Nevertheless, Deloitte point out that it is worrying that about a third of clubs in the Championship reported a wages/revenue ratio of 100 per cent or more, paying out in wages more than they earned in revenue. However, it should be noted that in the case of Blackpool, which had one of the worst ratios in 2009-10, the figure was inflated by promotion bonuses.
Does splashing the cash bring success? On the one hand, the correlation between wage costs and league finishing position was weaker in the Championship than the Premier League. On the other hand, the evidence indicates that promotion to the Premier League almost always requires a top six ranked wage bill.