A constant theme over the past few months is we all know we need that ‘star’ player but we all know we would have to pay astronomical fees and wages to attract the players. The question is whether we can afford this and whether the risk is worth it. It is reckoned by most serious judges of football that wages as part of turnover should not be over 75%

the last Published accounts for the 2007/08 season show

Turnover – £75,639,000
Wages – £50,447,000

A ratio of 66% Turnover/age ratio, comfortably below the 75%

We will not know the figures for the 2008/09 season for another 3 months or so, however we can take some educated guesses.

We know the wages will have significantly gone up, in the time since the last reported accounts, Ash Young’s contract was renewed significantly higher. In general the likes of Warnock, Cuellar, Dunne, Heskey, Milner have all been brought on high wages at least £1.5m a year if not more, it is likely given the ones leaving have been cheaper that the wage bill could be £65 million a year if not more.

Therefore to be within that 75% ratio turnover will have to be at least £90m an increase of £15m over two years but TV revenues which make up a large % of turnover have remained fairly static.

It is a fair guess that we have breached now that 75% limit on wages/turnovers and this may explain the apparent reluctance to go any further.

Randy Lerner a while back was quoted in the Sunday Mercury as saying

dangle my foot over the ravine’

to have success

and MON just three weeks ago said

“We are not looking at players at this minute because we have to sell. Do I have to sell to buy? We wouldn’t be the only club in that position.”

It is simple really we have the cash I believe to spend money on fees, we increased the share capital in 12th March 2009 by £100,000,000 to £200,000,000 this gives Randy the chance to convert loan notes into shares as Man City and Chelsea owners have done.

The key question is over the wages as per revenue and when fans talk of taking risks by buying very high waged players they have to remember our wage bill is now already close if not exceeding the 75% limit as recommended above.

to take those extra steps are you willing Villa to risk the future by taking wages ever closer to 100% of revenue, that is what Portsmouth did and look at them.