Yours for £1m. Need to make room for Dean Saunders
- May 24, 2007
My impression, from what I’ve read and heard about our wage structure, is that we incentivise performance by paying large bonuses for on the field success.There is no way our club is run so poor from a business point of view that our expenditure increase for being successful matches or beats our income increases. Yes, we all know and have for awhile, that our wage bill will increase with success due to our bonus scheme on player contracts. But we also know FSG/Gordon are also committed to bringing/keeping that wage bill within a certain percentage of operating costs as well. To the 31st May 18 our wage bill was £264 million 58% of turnover. How much are people really expecting our wage increase to have been? Players wages wouldn't have doubled, they probably haven't even increased by 50%. And not all wages are going to be in line with that or effected by our success. This gets rolled out as an excuse as to why we didn't spend much last year but there are two other possible reasons which seem to fit the facts better. 1: FFP seems to work better if you spend big every other year as it operates on a 3 year cycle. This year and 2 years ago we operated at a net profit the year in between we operated at a net loss. 2: There are very few players who could improve this side and we had a lot of "he'll do for now" style players in the squad that were good enough to get by with. Klopp won't buy for the sake of buying and will wait for his chosen target if need be like with VvD and Keita. As long as who he wants will be available he will wait till he is instead of go for an alternative which he only seems to do once an option is ruled out for the foreseeable. I think it's a combination of those two things, loose operating model to spend big every other year (matches the scouting and recruitment plans of a rolling 2 summer plan) whilst being open to opportunities that would bend/break that (operating well within FFP rules and wage rules gives us room to maneuver) and also keeping up to speed on when these targets are most likely to be at their optimum availability.
I suspect that what Mo Salah got paid last year puts him near the top of player earnings - only which lots of it as bonuses rather than a base rate.
That isn’t an excuse for not spending, by the way, cos I still think we could sign whoever we want.