The financial divide between Premier League clubs and those in the English Football League (EFL) has been a contentious issue. The Premier League’s refusal to provide the EFL with a larger share of TV revenue has sparked a heated debate. While it’s easy to vilify Premier League owners and chief executives, they do raise a valid point about how the money given to EFL clubs is often squandered on exorbitant player wages and agent fees.
EFL teams are often driven to spend exorbitantly in pursuit of promotion to higher leagues. Despite a slight drop in average Championship player wages to £10,000 per week, it is still an astronomical amount. Players earning half a million pounds a year can walk around unnoticed, highlighting the disparity between their wages and their level of fame.
Last season, Championship clubs incurred average losses of £25 million each, while League One clubs suffered losses of £5 million each. These figures are staggering, especially considering that the Championship attracts the highest attendance of any league in the EFL, with only the Premier League surpassing it in terms of fan turnout. However, increased attendance does not translate to financial stability for clubs.
The financial landscape of the EFL has changed dramatically. It is now nearly impossible for moderately wealthy fans to lead their clubs from the EFL to the Premier League. Delia Smith and Michael Wynn-Jones, owners of Norwich City, are handing over control to US businessman Mark Attanasio due to escalating costs. The days of self-made club owners are fading away.
The EFL has made efforts to tighten spending rules, but some wages remain exorbitant. For example, Conor Coady earned £80,000 per week at Leicester in the Championship last season. Even now, Leeds United has players like Joel Piroe, Patrick Bamford, and Ethan Ampadu earning around £50,000 per week. The EFL clubs have benefited from a lucrative TV deal with Sky this season, but the extra funds are primarily being spent on players.
League One currently faces significant financial challenges. Salaries have increased substantially, with some players earning up to £4,500 per week, compared to £3,000 the previous season. For instance, Alfie May’s wages jumped from £2,000 per week at Cheltenham to £16,000 per week at Birmingham. Newly promoted clubs like Wrexham and Stockport are also spending heavily on wages, with some players earning up to £10,000 per week.
The COVID-19 pandemic was expected to prompt a reset in football finances. Clubs pleaded poverty and asked players to take wage cuts. However, Premier League players earning £150,000 per week, equivalent to nearly £8 million per year, went unchallenged. Additionally, some clubs are ending concessions for lifelong fans, leading to further discontent.
While EFL clubs have shown more consideration for their supporters, the priority should be for these clubs to ensure their own financial stability. They are essential to their local communities and must avoid causing irreparable damage.