Analysis: European Football - Revenue & Wages
The relation between revenue and wages in football has been very complex. On one hand, the revenues of the top tier clubs across Europe (700+ teams) have increased at a rate of 8.5% CAGR from 2012-2021, in the similar period, wage costs too have grown at the rate of 9.1% CAGR (source: UEFA European Football Landscape Report).
Financial sustainability of football is largely dependent on the cost control measures like the profitability and sustainability rules which is linked with the total wage expenses of a club, the single biggest component in operating expenditure of a football club.
In this blog, we will look at the relationship between revenue and wages more closely.
European Top Tier Clubs
As the UEFA Club Licensing Report released recently, combined revenue of 700+ clubs in European top tier leagues has been increasing by a faster the rate over that of combined wages. Since FY20, the total revenue has increased by approximately 30% reaching to €26.8bn in FY23 while in the same period the total wages increased by 23% reaching to €18bn in FY23. This has enabled bringing down the wages/revenue (W/R) ratio, a key performance indicator used in measuring the financial sustainability of the club, to below the widely suggested 70% mark.
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The wages data from UEFA Cub Licensing Report 2025 throws some insights:
– ‘Big five’ leagues cumulatively account for 73% of revenues and 72% of wages.
– The rate of wages growth (9.5%) overshadowed the growth rate of revenue (8.7%) in case of Bundesliga.
– Wages decreased by 2.1% in Serie A whereas revenue increased by 22.8%.
– Seven leagues surpass the 70% W/R mark with Belgium, Turkey and Greece leagues are perilously over the 85% level. That said, four leagues are very close to the 70% mark.
20 Highest Revenue Generating Clubs
For the highest twenty highest revenue generating clubs, who cumulatively aggregate for 40% of the total revenue accumulated by 700+ clubs in the European top tier leagues, the average W/R ratio is well under the 70% level but has increased by 2 percentage points in 23/24 over 22/23. There are still four clubs who have surpassed the level.
Notable decreases in wages can be seen at FC Barcelona, Juventus and Chelsea FC contributed to wage growth of less than 3% across the top 20 clubs in 2024. UEFA Club Licensing Report further states that average wages in the top 20 club have doubled between 2014 and 2024. As performance-related typically makes up 15–25% of larger clubs’ wages, so year-to-year fluctuations in rankings and performances leads to pay changes.
Premier League
About 7/8 Premier League clubs are yet to submit their financial statements to the Companies House as of now, therefore we will take the 22/23 data in consideration.
Analysing them based on their individual wages & revenue equations:
– Combined total revenue of the clubs increased by 11% over 21/22 to reach £6.06bn.
– Big 6 clubs – Manchester City, Manchester United, Liverpool, Chelsea, Arsenal and Tottenham Hotspur cumulatively contributed 57% of the total £6.06bn.
– The cumulative wages of the Premier League clubs grew by 9% over 21/22 to £3.94bn.
– Average wages/revenue (w/r) ratio of the 20 clubs: 65%.
– 50% of the clubs have recorded over 70% w/r ratio.
In Conclusion
We can see sincere attempts at creating a financially sustainable future for the game at multiple levels, from individual clubs to leagues to the governing body. One of the primary concerns, better wages control, is on top of the list. With the increasing influence of American ownerships in European football, there has been a repeated call for the introduction of salary caps much like the NFL and MLS. Would this be a valid step in European football?
We would like to know your opinions.
Images: SBI Barcelona
