Fixing The Financial Divide In Football

The difference between the wealthiest clubs and the poorest clubs has reached unprecedented levels. And it’s ironic given the record amounts of money in the game today. We see football players becoming instant millionaires and purchasing fast cars while at the same time we see many clubs crumble under financial burden. It’s a tragic irony.

The main cost that has increased in the last 2 decades is players’ wages. Football players frequently occupy the top places when it comes to the richest sportsmen in the world. The facts are staggering. According to a recent article, the average footballer’s wages in the UK have increased 65% since 2000.

An increase in players’ wages effectively means that clubs have to pay more to keep their best players and/or to attract new players. A lot of clubs are not able to afford such wages and have to make the tough decision of borrowing extra funds to remain competitive. Competitiveness is even more vital when a club can get relegated at the end of the season.

The principal benefit of such a system is that it guarantees that independent of revenue, each club will be able to remain competitive. The fans are the big winners in such a situation as everyone can aspire to seeing their team win the title at the beginning of every season. Due to this excitement, bigger crowds are also guaranteed, which is great news for the poorest clubs.

The major drawback of a salary is that it will potentially not make it any easier for clubs to retain their best players or recruit new talent. A salary cap in one country would give an advantage to those clubs in countries where there is no salary cap. A salary cap has the potential of actually increasing the wealth divide between the richest and poorest clubs.