Worst is over for football finances

Football clubs are learning to adjust to the new, harsh economic reality surrounding the game by reducing costs and player wages as they attempt to avoid the financial problems that have threatened their existence.

Clubs are coping with austerity by:

Salary caps
Performance-related contracts for players
Negotiating more loan deals

In the 2001-02 season notes that in the First Division wages only increased by 3%, followed by 8% in the Second Division and 18% in the Third Division.

In the Premier League, eight clubs reduced their wages-to-turnover ratio while only two clubs paid over 100% of turnover as wages compared to 16 in season 2000-01.

The income of Premiership clubs will have exceeded £1.25bn last season with the average club recording annual revenue of £56.6m. In season 2001-02 Football League clubs saw their total income grow to £467m.

Source: Guardian 31 July 2003 (adapted)

Questions

Outline the key factors that determine a) the income of a football club and b) the wages of a footballer.
Assess whether the richest clubs will always be the most successful
In the context of teamwork, assess whether footballers in the same team should all be paid the same wage

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