Skip to main content

Which clubs got best and worst value from their budget?

Which Premier League clubs performed best and worst in relation to their budget?

One measure is how much each club paid in wages for each point gained in the Premier League. As an example, Manchester United’s wages were £384m, while they registered 75 points in the league, so they effectively paid £5.1m for each point.

On this basis, Brentford were in a class of their own, paying just £1.2m wages per point, ahead of the other club renowned for the quality of its data analytics, Brighton £1.9m. Thanks to their excellent performance on the pitch, Aston Villa £2.2m and Newcastle United £2.4m also did well here. In contrast, Leicester City paid a chunky £5.4m per point.

If we restrict the analysis to the Big Six, Arsenal’s performance was the best by far with only £2.5m per point. At the other end of the spectrum, we find Chelsea with £7.7m, comfortably the worst in the top flight.

Clubs can also be ranked by comparing their final position in the Premier League with the position implied by their wage bill.  Once again, Brentford and Brighton shine here with both clubs finishing nine places better: Brentford came 9th in the league compared to the 18th highest wage bill; while Brighton finished 6th vs. 15th highest wages.

The worst under-performances were Leicester City -11 places (18th vs 7th highest wage bill), Everton - eight places, Chelsea - eight places and Leeds United - six places.   Four of the Big Six did worse than implied by their wage bill with the exceptions being Arsenal +3 places (2nd vs. 5th highest wage bill) and Manchester City +2 (1st vs. 3rd highest wage bill).

The real stand-out for squad cost per point were Chelsea, who paid a chunky £20.9m for each of their 44 points, followed by Manchester City £12.1m. Even though City notched up an impressive 89 points, they had by far the highest squad cost, so score badly on this ratio.

In fairness, this is a metric where the leading clubs are always likely to look bad, as seen by four of the Big Six being in the bottom five places. The best performing here was again Arsenal with just £7.7m.

Chelsea have massively outspent every other club in the last five years with £1.3 bln, including an eye-watering £539m in 2022/23. This is almost half a billion more than the next club, Manchester United £762m.

Maybe surprising to some, Arsenal are next highest with £753m, just ahead of Manchester City £742m. Liverpool’s £574m is the lowest of the Big Six, even behind the notoriously parsimonious Tottenham £577m.   Aston Villa are the fifth highest spenders with £579m, much more than other aspirational clubs like Brentford £147m and Brighton £283m. Crystal Palace’s outlay was also very low at £189m.

Looking at transfers does change the rankings for a few clubs, though the story remains very much the same for others, especially Brentford who still provide the best value for money under this metric with £2.5m per point. Crystal Palace are in second place with £4.2m, just ahead of their great rivals Brighton £4.6m.    Given their record-breaking spend of over half a billion this season, it’s no surprise that Chelsea look awful here with their £28.4m per point costing them more than twice as much as any other club.

The club that get most “bang for its buck” is "drum roll” Brentford, as they have performed best in every single one of our categories.  At the other end of the table we have Chelsea, whose huge transfer spend last season took just took them past Leicester City in the race for the wooden spoon.

Looking only at the Big Six, there is another clear winner, namely Arsenal, who came top in three out of the four categories, only missing out on transfer spend.  Of the other clubs, Brighton were a clear second, only beaten by Brentford, though Newcastle United and Crystal Palace also did well relative to their financials.

As might be expected, the three related clubs look bad, but Everton were the second worst performing club compared to budget, even though they narrowly avoided the drop.

It looks like the data-driven strategy employed by Brentford and Brighton has worked out pretty well, showing that well-run clubs can at least compete with the big boys, based on smart recruitment and good coaching.  On the other hand, the jury is very much out on whether Chelsea can justify the immense investment in the squad since Todd Boehly’s arrival.

 

Comments

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl