Deloitte have published their annual review which again highlights the manic nature of the Premier League - report. Fulham get a specific mention thanks to MAF converting his loans into equity. Generaly though (given what we know about the Club's financial management and things like attendance figures) we probably fall into the 'above average', 'decent credit risk' ratings. On the future, a couple of key paragraphs stand out - "Based on the Premier Leagueâs long-established central revenue distribution mechanism, for 2013/14 TV monies to clubs are estimated to range between £60m and £95m; on average an extra c.£25m per club. The equivalent TV monies for 2011/12 ranged from £39m (to relegated Wolverhampton Wanderers) and £61m (to Premier League winners Manchester City)." " If historic trends are repeated, increasing wages will absorb about 80% (£480m) of the extra revenue. However, if the clubs exhibit unprecedented restraint helped by new cost control constraints and only 40% (£240m) of the extra revenue is absorbed by increasing wages, then the wages/revenue ratio will fall to 66% and operating profits will climb to a record level of around £380m. Time will tell." Recently, we've all tended to argue that for the Club to move forward the extra TV money should be spent in transfer fees. However, while we've been financially prudent and rightly so, in controlling the wage bill over the past few years, there does seem a case for reviewing that wage policy. And using the TV money to up the wages cap. We've seen a trend that way already. Apart from the obvious instance of Berba, the top earners have gone from £30kpw (in the Murphy days) to over £40pw (in the Hangeland day?). The actual wages per player are of course total conjecture since all we ever know is the total wage bill. But it seems to me, if we want to keep a stable squad and attract new talent to strenghthen it, then offering higher wages is essential. And not inflated transfer fees. In fact I'm going to argue that is the strategy being adopted by MAF and Ali Mac in the current transfer window.
We could pay players more if we get them for free or very little. I still would want us to keep a cap, it makes more sense in terms of stability but it hinders the attraction of good players.
