Right, last go, I have a hard day on the golf course.
Transfer fees are total speculation and can be structured, i.e. not actually paid for in full. This is where the yanks have for a while created a smokescreen. But nobody takes players wages into account and these are FAR more relative to who plays for you.
So try this on for size, and unlike your rants this isn't bullshit.
FT.com / UK - Premier League wages bill tops £1bn
Premier League wages bill tops £1bn
By Roger Blitz, Leisure Industries Correspondent
Published: June 4 2009 03:00 | Last updated: June 4 2009 03:00
Total wages in the Premier League have exceeded £1bn for the first time as England's elite football clubs take advantage of extra television rights revenue in a scramble for talent.
Their financial advantage over rival European leagues is set to narrow, however, because of sterling's decline against the euro and the incoming 50 per cent tax band for top earners, according to Deloitte's annual review of football finance.
The Premiership wage bill rose 23 per cent to £1.2bn in the 2007-08 season, according to the report.
Chelsea comfortably topped the wage league, with Roman Abramovich's club spending £172m on salaries, compared with £121m spent by Manchester United, £101m by Arsenal and £90m by Liverpool.But the wages-to-revenue ratio dipped slightly to 62 per cent because revenues across the 20 clubs grew 26 per cent to £1.9bn.
A £736m surplus enabled the Premier League to nearly double operating profits to £185m, although only 11 out of 20 clubs were in profit, while operating margins fell.
At the same time, there was a rise in net debt - which worries the government and the Football Association - by £400m to £3.1bn, including £1.2bn of soft loans from club owners, such as Mr Abramovich. Interest charges totalled £188m.
Dan Jones, of Deloitte's Sports Business Group, said that, with pressures from the recession on season ticket renewals, sponsorship and merchandising, the 16 per cent compound annual growth rate enjoyed by the Premier League since its inception in 1992 was likely to slow, despite a 4 per cent increase in the value of its new domestic TV rights deal.
"You might be looking at 5 per cent annual growth in the next five years," he said.
The surprise finding was an 18 per cent increase in other operating costs - areas such as utility, property and insurance - which takes the increase since 2005-06 to 42 per cent. Those costs grew at an annual rate of just 3 per cent in the preceding four years.
With revenue growth slowing and wage costs unlikely to decline, controlling those costs was probably the only way profitability could be improved, said Deloitte.
Mr Jones said the exchange rate was "definitely helping to close the gap" between the Premier League and top clubs in continental Europe, and the 50 per cent tax rate would also make a difference.
"But once you get down to 7th or 8th place in the Premiership and look at the equivalent on the continent, the gap is still substantial," he said. The revenue gap between the Premier League and both Germany's Bundesliga and Spain's La Liga is more than €1bn (£863m), despite a 15 per cent depreciation in sterling.
While the amount spent on wages tends to determine a club's league position, no such correlation exists in the Football League's Championship, where revenues grew 12 per cent but net debt rose by £28m to £326m.
Wages in the Championship rose £32m to £291m, but the wages-to-revenue ratio is a worrying 87 per cent, up from 79 per cent the previous year. Player wages are up across the Football League, by 17 per cent in the Championship, 27 per cent in League One and 8 per cent in League Two.
"For larger clubs, playing to sold-out stadia, with strong demand for corporate packages and wide commercial appeal, the impact [of the economic downturn] may be limited," said Mr Jones.
"However, for smaller clubs, where demand is more variable and where significant excess capacity exists, the downside may be more pronounced."
Fact!!