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UEFA Benchamrk Report 2016 - Our Spurs Focus

UEFA Benchamrk Report 2016 - Our Spurs Focus


UEFA has just published, and the BBC has just reported on, its "Benchmark Report 2016". According to the BBC, it "documents everything from club revenues to agents' fees" and it`s well worth a read if you want to dive into the financial side of football.

Among other things, it benchmarks the Premier League against other leagues, looking at club revenues, wage spend, how TV rights money is split and distributed, etc.

There are a few interesting points in the report. According to it, THFC have the 6th-highest revenue in England, and the 12th highest in Europe with 281 million € in 2016 (essentially, more than any European club except for the 5 usual suspects in England, Real Madrid, Juventus, Bayern Munich, Barcelona, Juventus and Dortmund). The average revenue in the PL in 2016 is 244.4 million €.

On average across all PL clubs, revenue stems from the following sources: 46% from domestic broadcasting rights, 6% from UEFA, 16% from gate receipts, 30% from sponsorship/commercial revenues and the remaining 2% from various other sources.

· Looking at wages, 2016 was the first time that the average PL wage bill was more than double that of the next highest-paying league (Germany).

· Across Europe, while revenue grew on average by 9.5% between fiscal years 2015 and 2016, wages only grew 8.6%.

· Across Europe, the average wages-to-revenue ratio is 62.5%. In England, it`s 63%.

· The report also mentions that "among the 20 highest-paying leagues, German club football continues to have the lowest wage to revenue ratios (50%). At the other end of the scale, a number of leagues reported an average wage bill of 70% to 80% of revenue, with Israeli clubs spending on average 80% of all revenue on wages and Ukrainian clubs more than 100%. Given that other, mainly fixed, operating costs tend to absorb between 33% and 40% of revenues, a wage ratio of over 70% is likely to result in losses unless there is a significant surplus from transfer activity (which was the case in Ukraine). This is why it is included as a risk indicator in the UEFA Club Licensing and Financial Fair Play Regulations".

· Looking at THFC`s wage bill, we`ve got the 14th highest wage bill in Europe (AC Milan and Roma, despite having lower revenues, have higher wage bills than us). Of the top 20 clubs listed, THFC are one of only 2 clubs (Milan being the other) whose wage bill actually decreased from 2015 (the average across the top 20 being a growth of 12%).

· The report lists us as having a 50% wages-to-revenues ratio. The average across the top 20 is 61%. We`re one of 5 clubs in that top 20 with a ratio of 50% or less.

· The average PL wage bill in 2016 was 153.9 million €. Ours was 140 million.

There`s a lot more information on operating costs (ours, at 86 million or 31% of our revenues, are higher than the PL average of 26% but lower than the 33% average across Europe) or profitability (we rank very high). There is also some interesting information about the results of FFP introduction, among other things. For more information, here is the link to the report: https://uefa.app.box.com/v/benchmarking



Click here to join in the debate on the club forum.

Writer:BelgianSpur
Date:Thursday January 18 2018
Time: 7:00AM

Comments

0
The article should of course read "essentially, more than any European club except for the 5 usual suspects in England, Real Madrid, Juventus, Bayern Munich, Barcelona, PSG and Dortmund" instead of listing Juventus twice.
BelgianSpur
17/01/2018 16:44:00
0

This all kind of makes me wonder how on earth THFC can afford all the recent investment and reinvestment into the club AND still pay our players as much as we actually do. And, whilst not winning stuff as well, which of course raises the clubs profile and generates even more revenue. Levy and Lewis must be bloody financial Geniuses. Which is nice.

Anyone for a cuppa? One Sugar or two?

Hot Tottingham
18/01/2018 07:53:00
0
Highlights why we need a new stadium. Its interesting how the way stuff is presented changes the message. "12th highest in Europe" sounds much better than " there are eleven clubs with more money than us who will get first pick on players".
jod
18/01/2018 09:02:00
0
Jod - even assuming that's true, those 11 clubs can only buy so many players. Assuming they all have squads of about 25 players, that should only account for the top 275 players in the world. Of the remaining millions of players out there, is there really nobody better than Sissoko?
BelgianSpur
18/01/2018 09:32:00
0
It's also interesting to point out that despite being the 6th richest club in England, our wage bill is actually almost 10% lower than the PL average. Either every other club in the PL is run by imbeciles and most of those clubs are heading for administration imminently, or there is probably an argument to be made for a higher wage bill without bankrupting our club. Toby's agent must be reading this report wondering why those extension talks are so hard.
BelgianSpur
18/01/2018 09:36:00
0
BelgianSpur - "Better than Sissoku" isn't going to win you anything.If you are going to spend money you want it to be on someone who will actually make a difference, take you up a level. Those are the players that tend to be on the radar of those eleven clubs who can outbid us. That's why we have tended to do better where we have developed players rather than buying the finished article. As for clubs being run by imbeciles, you could make a strong case for that. I read an article on Barcelona recently detailing how one of the four biggest clubs in the world had managed to get itself into so much debt it was having major problems financing the purchase of new players.
jod
18/01/2018 10:09:00
0
The biggest problem about the 11 clubs richer than us in Europe, is that 5 of those clubs are in our own league.. Also, surely the EPL wage average of 153.9 million is heavily impacted by about 4 or 5 rich clubs who are massively out of sync with the rest of the league.
Guyver
18/01/2018 10:11:00
0
Guyver - definitely a fair point. But the weight of 4 or 5 out of 20 is still a limited weight. Given where our club is compared to the average, there are probably quite a few teams who have larger wage bills than us yet make nowhere near what we generate in revenues (sadly the report doesn't offer a full breakdown of each club by league). Are those clubs still going to be around in 5 or 10 years? We'll see.
BelgianSpur
18/01/2018 10:35:00
0
jod - also a fair point re Sissoko (I just used him as an example of an imperfect squad player). But having a second striker who can offer something different off the bench, and who will actually score goals in our system, would probably improve us and/or win us a game once in a while. That would make a difference and I don't think we need to spend 70 million on that player. In Llorente, we have bought a player who is neither for the future, nor an immediate fix for our problems. He's not a bad player but he's wasted if we don't play to his strengths - and we've very rarely done that so far. There are ways we could improve our squad without having to improve our 11 and/or pay immense fees.
BelgianSpur
18/01/2018 10:42:00
0
BelgianSpur, we've always had the 6th highest wage bill in the league. You take out Man Utd and/or Chelsea and the PL wage average drops significantly. They skew the wage average statistics quite a bit.
Guyver
18/01/2018 10:45:00
0
Also the document does show the top 20 highest wage bills across Europe on page 86. We rank 14th, with the obvious 5 EPL clubs way above us. Arsenal (9th) the closet PL club above us, spend €263m, compared to our €140m. The closet PL club below us is Everton who spend €128m. So you can see how the 5 big PL clubs have had an effect on the EPL average, to bring it up to €153.9m despite the fact, 75% of the EPL don't pay those wages.
Guyver
18/01/2018 10:58:00
0
Actually we're joint 13th with Dortmund at €140m.
Guyver
18/01/2018 11:04:00
0
BelgianSpur - Would agree on the second striker but we've been looking for that player for three years now. Janssen failed, Llorente is failing. When you look at other clubs experience the omens aren't good. There was heavy criticism when we didn't sign Batshuayi but he's not set the world alight at Chelsea, even Morata isn't looking the player we thought he was two months ago. Arsenal fans were jubilant when they signed Lacazette, he was going to be their Harry Kane. They aren't so happy with him now. It just seems to me that finding strikers who can perform in the premier league at the level we want is not that easy. If you want the player to fit our system it restricts you even more. Every so often a club gets lucky, Arsenal with Sanchez, Liverpool with Salah. But the reality is there are far more (relative) failures than successes. I have a suspicion we will end up developing our own second striker because we can't buy one whose good enough. I may be wrong.
jod
18/01/2018 11:24:00
0
Financing transfers is greatly helped if you can sell players like Neymar,Mpappe & Coutinho.Liverpool have over £100 million to spend on players because of this. If Levy was that clever he would spend more of Spurs budget on a top scouting team so he can sign budding genius's before other well run clubs get them. It's a dog eat dog world & Levy is not keeping up with the realisation that inspired recruitment means you buy thoroughbreds ,not donkeys with no sell-on value.
Greavesaboveall
18/01/2018 11:36:00
0
Guyver - I think you missed the original point I was trying to make. Of course, the clubs who have higher revenues are going to have a higher wage bill. The interesting thing for me is not to look at absolute figures. What is striking to me is that clubs that have higher revenues are not only paying more in wages in absolute money (relatively normal), but they're also paying more proportionally. Arsenal's wages-to-revenue ratio is 55%. So is City's. Liverpool's and Chelsea's are at almost 70%. Everton, despite having significantly smaller revenues than us, come close to our wage bill because they're dedicating a full 78% (!) of revenues to wages. There is an argument to be made, and the report/article makes it, that anything over 70% is dangerous/unsustainable. However, the point is that we’re not only not “punching our weight” in absolute money, we’re also not doing so in relative terms. Clubs like Everton are being very aggressive to try to compete, and that may backfire. On the other hand, not only are we already at a disadvantage in terms of absolute revenue, we’re still choosing to dedicate less of the revenues we do have to wages, ie being overly conservative, when compared to all other PL teams.
BelgianSpur
18/01/2018 11:47:00
0
jod - is our inability to find a 2nd striker not just down to our failures in recruitment? Or is it really impossible to buy a good striker in the PL? I think Batshuayi is a good example. Despite having little opportunities to shine and clearly not being rated by Conte for whatever reason, he's still scored 17 goals in 50 apps for Chelsea, most of them as a sub. That's not so bad, considering. In any case it's a return I'd gladly take from a second striker, and a lot better than anything Janssen managed. And for every failure you list, let's have a look at the Gabriel Jesus or Oliver Girouds of this world, who still find the net on a relatively regular basis despite not being first choice. Even Lacazette has score 8 PL goals in 23 PL apps so far, so he isn't that far from the "1 in 2" ratio normally used as a benchmark for success for strikers.
BelgianSpur
18/01/2018 11:56:00
0
Not paying the market rate on wages backs up my critique of Levy.How can you sign quality players if you don't pay top wages.This is a false economy by a man who can't see the wood for the trees.
Greavesaboveall
18/01/2018 11:56:00
0
Belgian,completely agree.How many goals have Sissoko & Llorente scored for us.Perfect examples of Levy's stupid purchases.
Greavesaboveall
18/01/2018 11:59:00
0
Moura on loan would be good deal for Spurs.A proper winger for a change. I doubt it will happen with Capt. Meanypockets doing the negotiations.
Greavesaboveall
18/01/2018 12:07:00
0
Chances of Lucas Moura coming? Good signing?
Megaadz
18/01/2018 12:16:00
0
I certainly did not miss the point BS. We were talking about EPL wage averages, where you stated "there are probably quite a few teams who have larger wage bills than us ". Well there isn't. Wage/revenue % is a different topic, although a quote from the same document states "Of the 20 highest-paying clubs, only four recorded a wage bill of more than 70% of total revenue, and 12 clubs recorded a HEALTHY ratio of less than 60%." How long can Everton sustain an unhealthy 78% of revenue to wages? I suspect not very long before we start to see sales en masse, so a bit pointless and short sighted imo. Historically, Sunderland (78%), Aston Villa (currently 85%) Swansea (85%) ect have also had very high revenue/wage ratios. Just not sure those are examples we really want to follow.. 12th richest club in Europe, 13th biggest wage bill in Europe. (Distant) 6th richest club in the PL, (Distant) 6th biggest wage bill in the PL. Maybe we can afford to spend more on wages, but evidently not much.
Guyver
18/01/2018 12:26:00
0
BelgianSpur - We're talking about 1 in 3 strikers except for Giroud whose about 1 in 2.5 over his Arsenal career. I actually rate Giroud but we don't play to Llorente's strengths so why would we play to Giroud's ? To me a 1 in 3 striker is fine if you are trying to stay in the league. If you want top four it isn't, you really are looking for 1 in 2. I suppose where the money is relevant is if you buy a prospect for £5m and it doesn't work out you just shrug your shoulders and write it off. if you spend £30-£60m on a striker and it doesn't work out the opportunity cost (ie you've spent the money, you can't spend it again) for a club like ours is serious. There is one theory going around that says you can improve the odds on signing a successful striker by avoiding anyone who has only played in France .....
jod
18/01/2018 12:40:00
0
jod - tell that to Eden Hazard ;-). Every league has hits and misses. I happen to rate the French and Dutch leagues somewhat lower than Spain or Germany, so I always question how success in those leagues will translate to the PL.Going back to scoring, I would find a 1 in 3 rate perfectly acceptable for a second striker at a top 4 club (for your main striker, I agree with you, it's not enough). I can certainly follow your reasoning that you either spend very little and gamble, or spend big and want certainty. the problem is that we're not really doing either. We've spent 33 million combined on Llorente And Janssen, which should have resulted in more. It's way more than what we should be gambling with, and you have to ask whether we wouldn't have been better served spending 33 million on one decent (albeit not perfect) striker, instead of 2 inadequate ones. And if we can't find a decent second striker for 33 million, then we have rather big issues with our recruitment.
BelgianSpur
18/01/2018 12:56:00
0
Moura was a decent prospect he hasn't played much so chances of hitting the ground running low. Spurs have been in need of a player similar to son for two seasons. Marhez at under 50m is still a better bet than Moura for me.
palmover
18/01/2018 13:02:00
0
Guyver - I suppose it depends what you call "not much" -we obviously have a different definition of the meaning. Assuming we accept the report's definition of a "healthy" ratio, we could increase our ratio by 9% and still stay within the "healthy" threshold. 9% of 281 million is 25,29 million pounds, or more than 486k per week. That's the wages of 2 to 4 extra world-class players, and/or more than enough money to take care of our own star performers. There's a lot of ground between where we are and where the average is, let alone where the "unhealthy" threshold is. Pointing to the worst examples to scare people is one thing. Showing that there is another way to do things whilst staying within a very acceptable range is another.
BelgianSpur
18/01/2018 13:05:00
0
BelgianSpur, Well thats about £22m converted from Euros, probably around the same amount we picked up from the CL group stages last season, something we'd have to maintain I assume, as well as whatever we made in player sales..
Guyver
18/01/2018 13:32:00
0

There's a very good and simple reason (among others), that the wage bills of clubs that have a much greater income than Spurs spend higher percentages of their income on their wage bills. (Apart from ENIC being shrewd as opposed to carefree). And, that is because they have players like Bale, Neymar, Ronaldo, Messi, Tevez, Aguero, Hazard, Toure, Pogba, etc, earning more than twice and then more than thrice as much as our highest earners. But, even so, not all of their 1st team and squad players, earn the vast sums of these players I've mentioned. Many of them are on a similar scale to most of our regular top earning players. It's only when we look at the very best (Messi et al), at the very top of the wealthy club chart, that Kane and Hugo (our top earners) look to pale in comparison. And, we all know full well that Spurs can in no way compete with the Likes of PSG, City, Real etc, that have almost whole teams worth of the very best in the world and not just 1 or 2 top stars.

Those not so high earning clubs at a lower level than Spurs that pay a higher percentage on wages are not anywhere near us in performance levels and so not really a good example of clubs that we should be looking to for inspiration. In fact, it's Spurs that could well be seen as the most inspirational of all in the EPL, when it comes to our financial acumen in relationship to our current standing.

And, I'll repeat what I often say when it come to THFC players with their contracts and wages... They all chose to sign their contracts with Spurs and knew (and still know) full well what they would be getting into. It was their choice. They are not Spurs' slaves. And contrary to popular belief they are not all rushing off to earn more elsewhere and Levy is not about to cash in on them, just because he can. That would be just plain dumb, would it not?

Hot Tottingham
18/01/2018 14:07:00
0
Oh and we really cannot ignore the massive investment into our training facilities and new stadium, whether we like it or not. They are a fact and exist and cost THFC a vast amount of money. And most definitely are needed for the club to progress and to stand any chance at all to continue to fight it out with the big boys. These investments are not an excuse for anything, but a simple reality.
Hot Tottingham
18/01/2018 14:13:00
0
The argument here seem to be we should match Man Utd, Chelsea, or Man City spending to compete. Had we for example outbid Chelsea's £33million + enormous salary for Batshuayi would we have finished higher in the table by playing Batshuayi along side Harry Kane or dropping Kane to the bench?. Llorente was wanted by Chelsea and we beat them for him. A good signing - just give him a chance. Is a world class striker at £350000 at week like for Sanchez our aim?
camper
18/01/2018 14:37:00
0
I wonder, with Chelsea's new stadium build will Abramovitch have to start severely tightening his purse strings? I've no doubt that he will, and given the clubs massive debt..... In fact, I think he already has started skimping a bit already...
Hot Tottingham
18/01/2018 14:41:00
0
Then there's Man City. They don't even own their own stadium...
Hot Tottingham
18/01/2018 14:46:00
0
Right - carry on as we are. That has delivered loads of trophies so far.
BelgianSpur
18/01/2018 15:08:00
0
We cant change it now BS. The stadium is almost built...
Hot Tottingham
18/01/2018 15:13:00
0
Carry on as we are? I will. I don't know abut you BS. Do you have a major share holding in the club? If not then are you then prepared to march up to the new WHL, banner in hand, chanting Out with Levy! Yourself, palmover and Frank. The 3 wise monkey's. Hear no trophies, see no trophies, speak no trophies...With 123 as your faithful mascot?
Hot Tottingham
18/01/2018 15:23:00
0
I'm sure we can muster up a few more Spurs fans who are disgruntled with Levy... but I like the idea ;-)!
BelgianSpur
18/01/2018 16:07:00
0
The whole article is arguing that we all waste our time playing because only the rich can win, and it's impossible to buy a decent player for less than a king's ransom. Funnily enough a two penny halfpenny club came along and won the PL having bought Kante, Mahrez, Vardy, Drinkwater, etc.etc. all chip as chips. They proved that good recruitment can work, providing you know who and what you want, and play to their strengths. Our striker recruitments in recent seasons have been disastrous, nothing to do with wealth, just competence.
Frank
18/01/2018 17:50:00
0
We will see how much the new stadium will make a difference to THFC revenue streams as opposed to ENIC's wealth, when Messrs Lewis and Levy complete their project, and can survey their property empire.
Frank
18/01/2018 17:55:00
0
Frank, an anomaly is something that deviates from the norm, the exception, not the rule. Im sure in the next 200 years, their might be 1 or 2 more Leicesters, but to use them as an example, when they themselves (or any of the other "poorer" clubs) cannot even come close to repeating that one off season, is ridiculous. They're not even challenging for a top 6 place.
Guyver
18/01/2018 21:24:00
0
I am doubtful we are buying anyone in this window. With Toby back in mid Feb, the defense will be sorted. Son and Kane are in top form. Dele is almost back and Eriksen seems to once again back to running the show. Dembele is strengthening and Wanyama is back. My only concern with the team is the lack of a proper back up for Kane. I do also believe that we are now in a position to start offering to a wide swath of our players much more realistic wages because of the extra revenue from Wembley, which I expect will be even improved at the new WHL. I am expecting wages for 6-10 of our stars in the range of £90-150K a week with Kane possibly getting as much as £200K. Of course that just my gut feeling.
jvd
18/01/2018 23:12:00
0
Greavesaboveall... You say: "How can you sign quality players if you don't pay top wages"? But, we do have a whole teams worth of quality players... Or, should I presume that you disagree with this?
Hot Tottingham
19/01/2018 06:00:00
0

How about a little perspective, looking at the other end of the scale to the mighty rich.

Season 2016-17. The 2 clubs that shared the lowest PL wage bill were Huddersfield Town and Brighton and Hove Albion. According to talkSPORT, it was estimated at £11m for each club, for the year.

Compare this to Manchester United's wage bill for 2016-17 and it was a whopping £264m!

Paul Pogba, Man U's prodigal son and highest paid player, reportedly earned around £15m in wages alone. Add to that his massive sponsorship deals (Adidas etc), and he apparently earns (yearly), almost as much as Huddersfield and Brighton's entire, combined, yearly wage bill.

Anthony Knockeart, Brighton's top earner is on (just) £45,000 a week. Eat yer heart out Knockeart!

... Is he any good?

Hot Tottingham
19/01/2018 07:08:00
0
Sorry, BHA were in the Championship last season. I meant to say current PL clubs.
Hot Tottingham
19/01/2018 07:43:00
0
Huddersfield too.... But you know what i mean..... I'll go to bed!
Hot Tottingham
19/01/2018 07:46:00
0
Anthony Knockert is a passionate player, hard worker but Championship level at best.
jvd
19/01/2018 10:10:00
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