Wages at our club

[Steve1956]

Just read we are going to pay James Trafford 40 grand a week, can we afford these sort of wages,I'm presuming he won't be the top earner either,it's frightening the road we are going down.

[NaturalBornClaret]

Fairly sure we have been paying that amount for years Ben mee and tarks etc higher than that

Trafford not gonna come here for penny’s and his next contract likely to treble that if he kicks on

[taio]

Just read we are going to pay James Trafford 40 grand a week, can we afford these sort of wages,I'm presuming he won't be the top earner either,it's frightening the road we are going down.

Presumably we've mitigated by having appropriate contractual clauses in the event of relegation.

[gandhisflipflop]

Just read we are going to pay James Trafford 40 grand a week, can we afford these sort of wages,I'm presuming he won't be the top earner either,it's frightening the road we are going down.

The only things some fans are frightened of is coming out of their comfort zone, a position the club had been in for far too long.

[Steve1956]

Presumably we've mitigated by having appropriate contractual clauses in the event of relegation.

They are just eye watering amounts of money..even for just one season,we have seen it break many clubs,I just hope we know what we are doing

[AGENT_CLARET]

Just read we are going to pay James Trafford 40 grand a week, can we afford these sort of wages,I'm presuming he won't be the top earner either,it's frightening the road we are going down.

Jay Rod and Brownhill on at least 40k Tarkowski and Mee on at least 50k so it's a road we've travelled down before, don't worry about it

[taio]

They are just eye watering amounts of money..even for just one season,we have seen it break many clubs,I just hope we know what we are doing

I can see where you're coming from but we've paid at the level for several players in the past. £40k a week isn't a lot for the PL and it's inevitable we'll pay that in this league.

[Nori1958]

They are just eye watering amounts of money..even for just one season,we have seen it break many clubs,I just hope we know what we are doing

There was a post on here last week, which amazingly didn't get much traction, that we'd just paid 170 million to the previous owners. I find that more eye watering than the rumoured wages we may or may not be paying

[Steve1956]

Jay Rod and Brownhill on at least 40k Tarkowski and Mee on at least 50k so it's a road we've travelled down before, don't worry about it

OK AC ..you have reassured me.
........I'm not worried anymore

[agreenwood]

No idea, but if we can’t, we won’t stay up for long.

I suspect the average PL wage for a first team player is higher than £40k a week.

If that’s what Trafford will be on and it makes him one of our highest earners, it shows what we’re up against.

[Carwin261]

Imagine the total wage bill we had last time we were in the Prem ,
Pope
Lowton
Pietersen
Bardsley
Tarks
Mee
Collins
Woot
Westwood
Barnes
Lennon
Cornet
McNeil

All of these now off the bill,I imagine the guys that VK signed are on a pittance in comparison.

[Boss Hogg]

The main thing I hate about the PL. The money is obscene and more so in a climate where people can’t afford to heat their homes and more and more are using food banks.

[GodIsADeeJay81]

We were paying the likes of Mee etc £65k ish a week when they were here

[Hipper]

Pope, Mee, and Tarkowski had earned their wages by performing well in The Premier League. Trafford has done nothing yet. The concern is therefore not so much the wages, as the wages (and fee) for an inexperienced player.

[Quickenthetempo]

The previous owners were very generous with big bonus's.

The new owners did a great job of cutting the wage bill drastically, we will have to wait and see how they approach going back up.
Buying young players should help keep it lowish.

[Paul Waine]

There was a post on here last week, which amazingly didn't get much traction, that we'd just paid 170 million to the previous owners. I find that more eye watering than the rumoured wages we may or may not be paying

Before anyone starts to think the club has just paid £170m to the previous owners, it's a big misreading of what was posted.

In December 2020 ALK / Alan Pace agreed to buy 84% of the club from the previous directors. The total to be paid was £170m across a number of instalments. These instalments were paid in 2021, 2022 and the final instalments, somewhere around £20m (CP please correct if £20m is too far off) was paid earlier this year.

We know that some of the £170m was borrowed by ALK from the club. From memory this was £102m in 2021. There may have been some additional borrowing. CP has written numerous articles and posted them on the ALK thread. Some of the £170m has been paid from ALK's own investors.

[ksrclaret]

The money at this level is absolutely obscene and outrageous and the headlines numbers worry me a lot, I'm with you Steve.

My cautious nature would be more comfortable with us in the Championship paying lowish wages, but this is a club that wants to go places under AP and VK and I'm thoroughly enjoying the unbelievable ride we're on. The reality is we've got to pay wages like that and then some if we want to stand a chance of competing, and I'm encouraged by the club's track record in cutting the wage bill and selling our better players if relegation was to happen again.

[randomclaret2]

Pope, Mee, and Tarkowski had earned their wages by performing well in The Premier League. Trafford has done nothing yet. The concern is therefore not so much the wages, as the wages (and fee) for an inexperienced player.

If Trafford, or more likely his agent, knows we rate him at £15m/£19m ( 3rd most expensive British keeper ever ? ) Then he will expect wages commensurate with that.

[Muric Leggings]

[Big Vinny K]

When you reduce the wage bill from £90m to less than £30m in a few months, then absolutely walk the league with some of THE best football any of us have seen in the last 50 years….I think you have earned yourself the credibility and right to choose which players you want to sign and pay higher wages / transfer fees to.

Does not mean any new signings that are deemed as expensive will be guaranteed successes….but it should mean that we should have a bit of faith in their judgement

[Pickles]

Wouldn't surprise me if Mee and Tarkowski had been on close to double that by the end of their time at Burnley.

[daveisaclaret]

It's right and correct for a business that makes loads of money to pay high salaries to the people who generate the income. Doubt anyone will be starting a thread asking if it's right for the Premier League to be paying Burnley loads of money.

[claptrappers_union]

I would suspect £40,000 is the average wage + bonuses

[RMutt]

I would suspect £40,000 is the average wage + bonuses

Per year for a nurse, teacher etc etc. it’s amazing isn’t it?

[Pickles]

Maybe I'm a cynical so and so but it made me laugh when Brownhill called the winner of the Clarets Lottery thing the other week. "You've won £10K!" (or whatever it was.)

Brownhill has made that much by Wednesday every week.

[claretinkorea]

I would suspect that potential revenue from the 'expansion' to America will also feature in how player salaries are built now. No idea how much potential that revenue stream has, but it does seem like AP is making Burnley a bit more international than it was previously. That will come with financial rewards.

[KellyClaret]

Interestingly enough we were actually paying another 20 year old highly touted 'prospect' £40k a week in 2014. He was the club's highest earner at the time.

He went on to make 4 substitute appearences for us in the league.

[taio]

I would suspect that potential revenue from the 'expansion' to America will also feature in how player salaries are built now. No idea how much potential that revenue stream has, but it does seem like AP is making Burnley a bit more international than it was previously. That will come with financial rewards.

I hope not. We shouldn't be making financial commitments on revenue that hasn't been secured.

[Pickles]

Interestingly enough we were actually paying another 20 year old highly touted 'prospect' £40k a week in 2014. He was the club's highest earner at the time.

He went on to make 4 substitute appearences for us in the league.

Sordell?

Wait no, he wouldn't have been twenty.

[Pickles]

Interestingly enough we were actually paying another 20 year old highly touted 'prospect' £40k a week in 2014. He was the club's highest earner at the time.

He went on to make 4 substitute appearences for us in the league.

Howieson? Hewitt?

[daveisaclaret]

It's Chalobah.

[Pickles]

It's Chalobah.

Ah, course. Didn't think about loan players.

[claretinkorea]

I hope not. We shouldn't be making financial commitments on revenue that hasn't been secured.

Happens in business more frequently than you might expect.

[claret2018]

Our highest earner in our first PL season was on £65k a week, I had sight of the payroll at the time.

[taio]

Happens in business more frequently than you might expect.

It shouldn't happen at our club.

[claretinkorea]

Not disagreeing, but that's not something we have much of a say in. Worse still, it might be the pricing of staying competitive in a broken system..

[warksclaret]

I know the amounts are staggering but we will be playing a number of teams now in the PL where their players are on typically between £140k a week and now nudging £400k a week in some extreme cases

When you look at these, Burnley FC is still "shopping in Aldi & Lidl" and doing a dam good job in keeping everyone at the club fed

[taio]

Not disagreeing, but that's not something we have much of a say in. Worse still, it might be the pricing of staying competitive in a broken system..

Is there any suggestion, apart from your suggestion, that the club is taking into account unsecured or even unknown revenue when deciding on what we will players?

[claretinkorea]

Is there any suggestion, apart from your suggestion, that the club is taking into account unsecured or even unknown revenue when deciding on what we will players?

Nothing specific to worry about, just my own speculation as to where the money might be coming from...

[taio]

Nothing specific to worry about, just my own speculation as to where the money might be coming from...

The money is coming from PL commercial and broadcasting revenue in the main.

[claretinkorea]

The money is coming from PL commercial and broadcasting revenue in the main.

I'm sure this is indeed the case.

[Chester Perry]

Before anyone starts to think the club has just paid £170m to the previous owners, it's a big misreading of what was posted.

In December 2020 ALK / Alan Pace agreed to buy 84% of the club from the previous directors. The total to be paid was £170m across a number of instalments. These instalments were paid in 2021, 2022 and the final instalments, somewhere around £20m (CP please correct if £20m is too far off) was paid earlier this year.

We know that some of the £170m was borrowed by ALK from the club. From memory this was £102m in 2021. There may have been some additional borrowing. CP has written numerous articles and posted them on the ALK thread. Some of the £170m has been paid from ALK's own investors.

I have the payments thus:
- £98m upfront - £10m ALK/VSL , £23m from the club, £65m MSD loan
- £14m stage payment in 2021 from the club
- £37m across 2 payments in 2022 of which £27m came from ALK/VSL and £10m from the club
- £21m in July 2023 - the source of the monies are as yet unknown, the hope is they are from ALK/VSL

So ALK/VSL have contributed at least £37m to that £170m total - that rises to £58m if they covered all the final instalment that was paid a week late earlier this month.

That doesn't mean that the clubs contribution to the takeover is either £112 or £133m. there is the far from insignificant matter of interest payments and penalty payments for early repayment - combined that has run beyond £21m to date. Whether you would include the cost of the new draw down facility from Macquarie is a complex discussion because it can be argued that it is only really needed because of the large outflow of cash used to support the takeover, there are also reasonable counter arguments about a more efficient use of cash particularly around the factoring of transfer fee instalments.

As for the OP

I am expecting wages to increase to £60m - £70m for the coming season - as we transition to the higher expected rates that come with the kinds of fees we are paying

For years I have been banging on about the cost of football (Wages + Amortisation/Revenue) - our transfer struggles came once we got into the 90%+ zone under the previous administration - there is a potential that new FFP rules could see those levels being a breach of regulation with 80% - 85% likely to be the Premier League threshold in the next couple of years. That would likely require our club to keep wages (including bonuses) below £80m as we keep signing plays at £15m or more - something which will accelerate our amortisation costs

[Socrates]

I’m amazed that it’s 2023, that we’ve been in the Premier League for most of the last ten years and somebody is shocked that a signing costing north of £10 million will be on £40k a week.

[GetIntoEm]

We are a premier League club, we have to pay premier League wages, otherwise you don't get the players.

And people will be moaning when we get relegated again.

Just go with it. There's very little risk

[FCBurnley]

What is our predicted income from the PL for TV etc ?

[RVclaret]

What is our predicted income from the PL for TV etc ?

Depends on where you finish and there’s still a few unknowns for this season but somewhere in the region of 135-145m won’t be too far off (that’s total inc commerical, match day etc).

[Juan Tanamera]

It would interesting to know how much we earn from worldwide sales of replica shirts, especially so in America with JJ Watt doing his bit to plug them across the pond.

[Socrates]

It would interesting to know how much we earn from worldwide sales of replica shirts, especially so in America with JJ Watt doing his bit to plug them across the pond.

An absolute pittance.

It’s not about shirt sales. It’s about subscribers, followers, eyeballs on the club.

If the Premier League becomes a closed shop (and that’s what they want) we have to do something different to be invited in.

Shirt sales aren’t a big deal when TV pays you £100 million plus a year.

[FCBurnley]

Depends on where you finish and there’s still a few unknowns for this season but somewhere in the region of 135-145m won’t be too far off (that’s total inc commerical, match day etc).

Great thanks. So assuming PL income of say 140 mill and wages of day 70 mill that doesn’t make it too scary. Obviously we have other income and expenses but 50% ratio of wages to income looks manageable. Transfer fees and sales are the other major factor which could keep us sailing along nicely or of course sink the ship.
We have to trust that the powers that be know what they are doing

[tarkys_ears]

£100m odd wage bill the last few years in the Prem and the guy is worrying about £40k a week

Think one or two have been on just a quid or two more than that before son!