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Premier League wages continue to soar

When the Premier League was launched in 1992, Manchester United and Liverpool had payrolls of £8million each. As the intervening 30 years have passed, the large sums of money spent by broadcasters to secure TV deals to broadcast the competition has transformed England's top flight and played a key role in player wages skyrocketing.

Then came greater overseas investment into English clubs, as Premier League owners shifted away from the local-boy-done-good businessman of old to Russian oligarchs, United States-based consortiums and companies linked to nation states, and took footballers' salaries to a new stratosphere.

According to recent figures, Manchester City are the Premier League's highest-paying club, spending around £355m ($430m) a year on player wages, with Chelsea’s the second-biggest total at £343m.

Manchester United’s annual wage bill is now £323m, and Liverpool’s sits at £314m. The two north London arch-rivals Arsenal (£244m) and Tottenham Hotspur (£205m) are fifth and sixth on the league's list of the biggest payers.

Looking at individuals, United are paying forward Cristiano Ronaldo in the region of £450,000 ($544,000) a week — which makes him their, and the Premier League’s, top earner ever... so far.

In 1992, Liverpool winger John Barnes was in the headlines having become the first British-based player to get a five-figure weekly salary.

This comparison highlights how the influx of money via broadcasters, commercial deals and wealthy club owners has transformed the business of football.

The past decade has seen an explosion in what players are asking to be paid, and clubs are having to stump up the cash or risk losing a potentially key transfer target, perhaps to direct rivals for trophies, or those playing European football, who are prepared to pay.

It is also worth noting players have a much better understanding of their financial worth now compared to even 20 years ago. It is common for them to have a legion of financial advisors, agents and accountants working on their behalf.

Arsenal, for example, broke their wage structure to ensure playmaker Mesut Ozil signed a new contract in early 2018 when he had six months remaining on his old deal. They agreed to pay him £350,000 ($423,000) a week for three years, which turned out to be a misguided mistake as his form nosedived and resulted in the club terminating his contract in January of last year, six months before it was due to expire.

The knock-on effect of the Premier League’s top clubs paying higher wages is felt by those lower down the division’s pecking order, too.

A six-figure weekly salary is starting to become the norm for such clubs’ best players.  Southampton made James Ward-Prowse their biggest earner when he signed a new contract this time a year ago.

Aston Villa are forking out £125,000 each week to Philippe Coutinho, Crystal Palace’s Wilfried Zaha is on £130,000 a week and Newcastle United are paying Kieran Trippier a weekly wage of £110,000, while at Wolves, Joao Moutinho is understood to be on £100,000 a week.

Even newly-promoted Nottingham Forest have broken the £100,000 barrier, with England midfielder Jesse Lingard thought to have a basic weekly salary of £110,000 after signing a one-year deal last month following the expiry of his Manchester United contract.

Wage structures will continue to be “smashed” throughout the Premier League as clubs look to either avoid relegation, qualify for Europe or win trophies.  Backed by a record TV deal in the US, the Premier League will continue to be awash with cash and that money will eventually trickle down into players’ pockets.

 

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