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.