Football clubs should consider more performance-related bonuses and lowering the basic salaries of players, a sports finance expert has said.
Dan Jones of advisory firm Deloitte called on clubs to look again at how it remunerated its stars.
“There’s no bonus culture. It’s the same, win lose or draw. Why is that allowed to persist?” he asked.
Mr Jones was speaking at a BBC debate on the finances of football held at the Soccerex event in Manchester.
BBC chief economics correspondent Hugh Pym cited City banks such as HSBC and Barclays that were profitable and so paid their key executives bonuses which were several times higher than their salaries.
However, he pointed out that such payments, linked to success, were not replicated in football.
“The thing about high player wages is they are often at loss-making clubs. There seems to be a mis-match there which you don’t see in other parts of business,” he said.
‘Your debt builds up the spirit in your club breaks the fans see nothing to be optimistic about and the players are not motivated properly because they know they’re going to struggle’
Lee Staffrd, Chairman, Sheffield Wednesday
‘Locked in’
Wages paid by top-flight English sides in 2007/8 – the latest season for which figures are available – grew by 23% from the previous season, to £1.2bn.
Chelsea, Manchester United, Arsenal and Liverpool had the highest wage bill in that report.
However, while these clubs are seen as well-resourced, panellists on the debate suggested that smaller teams would especially benefit from changes to player pay structures.
Source: http://news.bbc.co.uk/1/hi/business/8546656.stm
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