Championship clubs’ spending on wages exceeded revenue for a fifth successive season in 2021-22, according to a new report.
Deloitte’s Annual Review of Football Finance found second-tier teams’ combined wages-to-revenue ratio was an astonishing 108 per cent, as clubs continued to chase the dream of reaching the Premier League.
Nottingham Forest, who ultimately succeeded in reaching the top flight at the end of the 2021-22 season via the play-offs, spent almost 200 per cent more on wages than they earned in revenue – £58.6million compared to £29.3m – in their promotion year, according to figures in the Deloitte report.
Championship clubs’ total revenue was up 13 per cent in 2021-22 compared to the season before, reaching £676million.
However, while wage costs fell for a second consecutive year, they remained higher than revenue for the fifth season in a row.
Tim Bridge, lead partner in Deloitte’s Sports Business Group, said: “The glamour of Premier League promotion is spearheading the continual drive for investment in Championship clubs, often in an unsustainable manner, driving some clubs to overstretch financially.
“It is critical that long-term decisions are now made by clubs’ owners and, with the introduction of the independent regulator, focus will turn to improving the distribution mechanism of revenues between the leagues and clubs.
“This must be accompanied by appropriate governance and financial controls to ensure that any proposed solution is suitable and sustainable.”
EFL chairman Rick Parry believes the disparity in revenue between the Premier League and the Championship has created a “cliff edge” between the leagues, and argues parachute payments are also fuelling inequality within the Championship.
Deloitte’s report underlines the value to clubs of reaching the Premier League. Relative to the 2022-23 season, it says revenue from broadcasters is expected to provide a minimum uplift of more than £90m for Luton, approximately £84m for Sheffield United and £54m for Burnley, with both of those two clubs in receipt of parachute payments whilst participating in the Championship.
The report said that should a club suffer immediate relegation, assuming they are not in receipt of parachute payments at that point, under existing arrangements the parachute payments from the Premier League will continue to provide an uplift over the following two seasons of at least £80m.
For a Championship club not otherwise in receipt of parachute payments, the value of promotion will be at least £170m across the next three seasons and, if a club survives their first season in the Premier League, they will be entitled to three seasons of parachute payments and the incremental revenue will be over £290m across five years.
Discussions over a new financial settlement between the two leagues are ongoing. The Government said in its White Paper on football governance that a new regulator will be given backstop powers to impose a settlement if one cannot be agreed, but it is unlikely the regulator will be up and running until 2024-25 at the earliest.
Parry accepts that reform of the distribution package has to go hand in hand with cost control measures, which are also part of the ongoing ‘New Deal For Football’ talks between the EFL, the Premier League and the Football Association.
Bridge believes it is vital for the leagues to see the common ground they share to resolve the dispute on distribution.
“The point I would make is that the longevity of the Premier League and the ability for clubs to move up and down between the Premier League and the Championship and to achieve variety in those clubs is a good thing for the overall brand and the marketing position of English football,” he said.
“Part of the beauty of the Premier League is always that any team can beat any other team. And so at any one point in time, what we really want to see in the English game is a variety and diversity of clubs coming through the league at different points in time, bringing new storylines, bringing new faces to the league because frankly that keeps it fresh.”
Wage spending in the Premier League in 2021-22 grew by £192m compared to the previous season, but this was outpaced by a £586m increase in revenue, meaning the top flight’s wages-to-revenue ratio fell for the second consecutive season from 71 per cent to 67 per cent.
That is still a significantly higher ratio than the average of the three seasons pre-pandemic up to 2018-19 – 58 per cent.
Across Europe’s ‘Big Five’ leagues as a whole however, revenue growth was outpaced by wages, which stood at 12.3 billion euros (£10.5bn).
This comes at a time when the continent’s football governing body UEFA has introduced new financial sustainability regulations, including a cost control rule which by 2025-26 will limit a club’s spending on wages, transfer fees and other player and coach costs at 70 per cent of turnover.
UEFA could go even further in the future, with president Aleksander Ceferin raising the possibility of a Europe-wide salary cap in an interview in April.
Bristol City Women 0-4 Man City Women: Hosts relegated as Fowler double inspires WSL leaders
Mary Fowler scored twice to set WSL leaders Manchester City on their way to a 4-0 rout of Bristol City, who suffered relegation as a result, on Sunday.
With Arsenal having drawn with Everton earlier in the day, Man City knew a victory would be enough to take the title race down to two teams.
That victory duly arrived in emphatic fashion, with all four of Man City's goals arriving in the second half.
Fowler's fantastic strike opened the scoring in the 62nd minute, with the Australia international doubling her tally soon after, paving the way for an Amy Rodgers own goal and Alex Greenwood's late header to seal a huge victory.
Arsenal are now out of the title race, with Chelsea - who have two games in hand on Gareth Taylor's team - the only side capable of catching Man City.
The Robins, meanwhile, will be playing in the second tier again next term.
Data Debrief: Bristol heading down with a whimper
Bristol City have failed to score in their last five games in the WSL, a run of 544 minutes without a goal.
They mustered just 0.09 expected goals (xG) to Man City's 3.4, with the visitors having now kept a clean sheet in nine of their 20 league games this season.
De Rossi demands more from 'tired' Roma ahead of crunch run
Daniele De Rossi acknowledged his Roma team may be tired, but he insisted they must not allow themselves to be embarrassed.
Roma fought back to draw 2-2 with last season's Serie A champions Napoli in a pulsating fixture on Sunday.
Tammy Abraham's late header secured a point for De Rossi's team, who took the lead through Paulo Dybala's penalty before going behind to goals from Matias Olivera and Victor Osimhen.
With Serie A set to have five teams in the Champions League next season, Roma occupy fifth spot with four matches remaining, but sixth-placed Atalanta are just two points behind with a game in hand.
There is also the small matter of a Europa League semi-final against Bundesliga champions Bayer Leverkusen on the cards over the coming weeks, and De Rossi set the stall out.
"We drew, it is not a result to throw away, but it is not the result or the performance that we wanted," Roma coach Daniele De Rossi told Sky Sports Italia.
"At times you can steal the ball off Napoli, but we then gave it back again too many times. Napoli had a lot of chances in the first half, we did better in the second, but we have to do better.
"Look, we are tired, but we cannot start thinking that we’re tired and that means we can be embarrassed in the final few weeks of the season."
Roma host Leverkusen on Thursday before taking on Juventus on May 5, with a crunch clash against Atalanta – who are also into the Europa League semi-finals – set to follow after the away leg against Xabi Alonso's team.
Key to a successful end to the campaign for Roma will be keeping Dybala fit. The Argentine has been involved in the joint-most goals (12) in Serie A since the turn of the year, scoring nine and setting up three, level with Juve's Dusan Vlahovic.
PSG's latest Ligue 1 title arrives as Monaco lose to Lyon
Paris Saint-Germain have been crowned as Ligue 1 champions after Lyon overcame Monaco 3-2 on Sunday.
A 4-1 midweek win over Lorient ensured that one more victory would be enough for Luis Enrique's team to get over the line, but PSG failed to get the job done themselves when they faced relegation-threatened Le Havre on Saturday.
That game was the 700th match of the QSI era at PSG, and the club's 1,900th in France's top flight.
However, PSG's wait to win their third straight title did not last long, as less than 24 hours later, Lyon – who will face the Parisians in the final of the Coupe de France at the end of May – came out on top in a topsy turvy encounter with second-placed Monaco.
Substitute Malick Fofana was the matchwinner for Lyon, and ultimately the player who handed the title to PSG.
Wissam Ben Yedder had put Monaco ahead in the opening minute, but quickfire goals from Alexandre Lacazette and Said Benrahma turned the match on its head before half-time.
Ben Yedder netted his second to restore parity on the hour mark, and thought he had sealed his hat-trick when he volleyed in from a free-kick, only to have strayed offside.
With only a win good enough for Monaco to stay in the fight, the visitors were then caught out in the 84th minute, with Fofana racing onto Lacazette's throughball and finishing calmly.
After a dismal start to the season, relegation looked a real possibility for Lyon, but they are now, with three games remaining, still in with a shout of qualifying for Europe.
PSG on the other hand now have 12 Ligue 1 titles to their name, with 10 of those coming under QSI's ownership. Aside from the COVID-impacted 2019-20 season, five of their last six league titles have been secured before the start of May.
It also means Luis Enrique remains in the running for a treble in his first season at the club, with PSG taking on Borussia Dortmund in the Champions League semi-finals next week.
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