30 Comments

Is there a need for a wage squeeze anymore

In many transfer discussions I keep cautioning about the wages.

When I think about this I do wonder if this is indeed a problem anymore. The first two signings suggest that may have to still be the case but need it be. Look at the accounts for the 2010-11 season

Turnover £92M – Wages £83M – 90% of turnover on wages

For 2011-12 we can take a guess that the turnover has reduced to around £90M and wages likely to have gone down by around £10M to £72M. This leaves now a wage ratio of 80%. This is still higher than the recommended limit than 70% of turnover.

For 2012-13 we can some good guesses that Macron deal is worth more, we will get higher crowds, more TV and higher league placing. From this we may see revenues at close to £100M. If wages stay at around £70M then of course this hits the target of 70%.

Now for 2013-14 we will have the new TV contract, this is said to be worth an extra £15M to each club. This will mean that in our case we could afford another £10M a year on wages and still be at 70% on turnover. With the likes of Dunne and Warnock (if they stay) out of contract at the end of this season we could I believe afford extra wages now.

I admit it would be a gamble and we would still need to control but in my view is there a need to reduce the total wages any further ?

We have seen reports that wages are capped at 45K a week per player but also hearing wages are there for a big signing. I think we may have more room to work with wages now since the new TV deal than I thought could be.

Again interesting times.

30 comments on “Is there a need for a wage squeeze anymore

  1. We can definitily loosen a bit wage wise if we get rid of the likes of Hutton, Warnock, IRELAND and Dunne/Collins. That would leave spare funds for one bit signing on 70,000+ a week.

  2. I think we need at least a couple of players in the £70k+ region.

    Proven, that is, not prospects who might come good.

    And even then it’s not a lot of dough in the stupid world of prem player’s wages.

    This is what gets me.
    Yes, we paid high wages for certain players, but it was needed to increase the quality of the squad.

    The only one problem I had with MON (yes, I know, but that’s what we have to compare with if we want to aim for the top) was that he paid top money for players and never used them.
    Cuellar is one that springs to mind.

    Regardless, Cuellar’s eye-watering £40k a week (for a backup player) is what you have to pay, if you have any hope of competing, imo.

    To back that up, I’d ask if anyone thinks we’ve improved our squad since MON left.
    If the answer is no, you have to ask why that is.
    It’s quite simply because we don’t pay the required money, imo.

    All that said, I’d like to think we can improve the squad a bit better than we have done recently.
    Step forward Mr Lambert.

    But even then the first X1 will require money.

    • yep agree with all that. all those at the top pay a lot for Bench warmers (I never understood how Spurs wages looked lower (they must have hid payments in other ways) .

      Our way is clearly to use the younger players we have (always will be on lower) pick up cheap gems (we hope) and supplement with a couple of higher paid players.

      With the right manager (and Lambert could be) then it can work

  3. (I never understood how Spurs wages looked lower (they must have hid payments in other ways) .

    Ian, I would never subscribe to the POV that says anyone cheats in footy.

    But I wouldn’t say you’re wrong either😉

    As many have said, it’s at least interesting times:-)

  4. Our turnover for last season should be much lower than 90 million as attendances were down more than 15% last season and we finished 7 places lower in the league, no europa league football (even it was only two matches its still worth a couple million). Even if we have made more from the genting sponsorship deal, than the previous deal with FXpro. I would say for last season our turnover probably hovered just above 80 million.

    Villa has been making heavy losses since Lerner took over and I think his priority is for us to start breaking even at least. Also realise that PL has been given 20 million to spend on transfers, thats not coming out of thin air, we have no major transfer fees coming in for the rubbish we need to get rid of. Throw the plans for stadium expansion. It all adds up.

    So wages still need to be tightly monitored IMO. We have Ireland on 60K+ has he been worth that, HELL NO! Spurs kept their wages low by signing young players who while highly rated were largely unproven or looking to make the step from lower tier premier league player. Young players get paid less. Not only did spurs have a lower wage they also have a signifcantly higher turnover due to the higher tickets prices of London clubs. Spurs only rewarded Modric with a bumper wage after he had a very impressive season, until then he was on about 40-50k a week. 50k+ should only be handed out players that are, or expected to be (as they have proven this in the premier league for at least a midtable team) invaluble first team players. You can’t really be handing out such contracts unless they have regularly turned in performances of the highest quality for AVFC.

    • I can’t even be arsed to answer that properly.

      I’ll just mention London, which is where everyone in the world wants to be.

      God knows why, it’s the biggest shithole I know.

    • Not sure turnover slipped £10M or so I factored £6M less TV but plus £3M for Genting and don;t forget Take that concert actually brought in a lot as well, maybe as much as £3M

      Rest of the post totally agree with

  5. Randy is squeezing our wage bill like his Mrs is in the divorce proceedings…

  6. “50k+ should only be handed out players that are, or expected to be (as they have proven this in the premier league for at least a midtable team) invaluble first team players.”

    Er, doesn’t Dunne qualify?
    Or even Collins?

    I wish I had your 20/20 foresight.

    These were both top notch defenders under MON and to be honest, it pisses me right off that all of a sudden they are crap.

    Dunne made the Prem team of the year, but no matter, he’s crap and we’ll ignore that eh?

    I’m so bloody bored with this point, but it strikes me, all you need to do is get a manager that can inspire the players.
    AM was a total mistake, who would never have got any of our players performing..

    But now, hopefully, we’ve got one in PL.

  7. You’re all forgetting Young and Downing money which weren’t included in last years figures.

    Can I just say focusing on the business as opposed to the football is odd to me. It’s people like this who give Faulkner the ideas that he is someone important and can comment on everything.

    The official website is becoming his personal propaganda machine, the business is privately owned and the CEO should conduct himself in a private way, not trying to hog the limelight and get his 15 minutes.

    Also he’s not that good at football deals, who doesn’t negotiate a break clause if sick note Jenas inevitably gets injured? £45k a week… What a CEO!

    • the business side supports the football side and hence is vital

    • So we moan when the board dont talk, then when they do with PF, we moan still. FFS get a grip. It’s a new era, the bitching is over, get behind the board, PF and the team and give them a chance.

      • Oh another “if you disagree with me you’re a moron”

        My point is that when Ellis spoke in the press you lot moaned. We now have an inexperienced naive CEO and we are supposed to bow?

        We shouldn’t know the behind the scenes people’s names let alone have them commentating on the playing side in the press and on the Football website.

        And if the story that Faulkner went to watch a player last year is true he really needs to be put in his place!

  8. Imo all clubs should be forced to cap players salaries at a ratio of around 60% following the lead set by the Bundesliga allowing a more level playing field for all clubs. Obviously there will still be discrepancies 60% of Man u’s turn over would be considerably larger than Wigans or our for that matter but surely in the long term this sort of cap would be for good of football as a whole and not cater to the elite few.

  9. I think Ian its more about what it will cost the people that pay at the turnstiles, A footballer can be a millionaire in a few months, The game is a national and world wide sport invented by us, it now has been taken over by fat cats and running away in demands, Im glad that once again English football clubs are now understanding the peoples plight in costs, I say give a decent wage that you and I understand as fair to the fan, yes a cap is warranted as I see it, and stop agents from taking over our game.

  10. So are we suggesting that a cartel that fixes football players wages at a set limit is a good thing ?

    Just I thought that the banks had been hammered for that policy.

    • So are you saying paying out more than you earn and ultimately undermining the long term financial stability of the game is a good thing?

      • You shouldn’t pay out more than you earn full stop.

        It’s why a few people need to be realistic as to Villa’s current position in the market.

        • I’m in total agreement with you Vaze but that logic should (imo) apply to football in its entirety. Man U paying out £200K a week when they are servicing a debt of half a billion, madness complete madness.

  11. RL is working towards UEFA’s financial fair play criteria , so the wage bill will be solely dictated by the clubs income revenue steams.

    The UEFA Financial Fair Play Regulations, first agreed in principle in September 2009 by the Financial Control Panel of football’s governing body in Europe UEFA , were brought in to prevent professional football clubs spending more than they earn in the pursuit of success and in so doing getting into financial problems which might threaten their long term survival.

    Introduced amid concern at the heavy spending of a number of professional clubs across Europe, it was hoped that the regulations would eventually lead to a more ‘level playing field’ by preventing clubs with very wealthy owners who make substantial cash gifts to their club from gaining an unfair advantage over other clubs who are run on a more sustainable business model, and in so doing encourage lower levels of spending. The FFP Regulations provide for sanctions to be taken against clubs who do not spend within a set budgetary framework over several seasons.

  12. Yes they will Ian
    As of the 2013-14 season clubs throughout Europe must fulfil the requirement to break even on their balance sheets and the calculations will be based on financial information from the 2011-12 and 2012-13 reporting periods. Sanctions will be taken against any club which oversteps the mark. Exclusion from the Champions League or Europa League, which would come into force in 2014-15, are their most swingeing measure.

    What will happen is Clubs will look for ways around them.
    Man City for example are rumoured to be agreeing a £400 million sponsership deal with Eitihad Airlines , or their owners in any other disguise.

    • “What will happen is Clubs will look for ways around them.”

      Exactly.
      So the FPP regs are total rubbish.

      So why is RL working to achieve the relevant criteria?

      • The fact remains By 2013/14, clubs throughout Europe will be required to break even on their balance sheets , so thats why RL working to achieve the relevant criteria .

        It’s why we need to be realistic as to Villa’s current transfer position within the market ,
        accepting RL’s realistic wage structure.

        Additionally this coming season the Football Leagues FFP begins ,
        http://www.football-league.co.uk/page/FLExplainedDetail/0,,10794~2748246,00.html

        The financial noose it tightening on all football clubs regardless of league or status.
        So burying our heads in the sand is no longer an option .

        • point is keep wages to 70% of turnover and FFP should not be a problem

          the point I am making is that we are almost there at the end of the his season.

  13. can we stop the bull****

    we are the only club in the EPL that bought into that nonsense (funnily enough, when it suited our owner to save a few snoops)

    its been put back till 2018/19

    it scared the fuck out off the big teams though didnt it lol

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