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Now that the financial results for last season's Premier League clubs have nearly all been fully published, I can present the wages-to-turnover ratios for 2018/19. The Ev lead the way:
Premier League clubs target getting the wages to turnover ratio to below 60%. Having a higher ratio isn't always an issue so long as transfer spend is relatively moderate and does not result in high levels of amortisation.
It is highly problematic, however, when your ratio is 85%, you've spent £380m (£170m net spend) in the last three years, you will incur hundreds of millions of costs for a new stadium over the next several years and there's little prospect of securing Champions League football.
Manchester United have, for years, managed wages relative to turnover very well- hence having a larger cash reserve than any other club in the league by far. Liverpool in recent years have become stronger on that front, not least helped by significant revenue growth since 2017.
In stark contrast, Spurs' players are relatively underpaid. Their ratio for a number of seasons now has been approximately 40%. From Daniel Levy's perspective, that's great business. The players and their agents have a different view; they know rival clubs pay a lot more.
It's little wonder, then, that most of their key players have moved, are looking to move or are becoming increasingly restless (e.g. Harry Kane) with the knowledge that even players at Crystal Palace and West Ham earn more money than most of them.
Needless to say, the effects of Covid-19 will play a number on these ratios for the current and next season (at least). Clubs like Liverpool and United will try to manage this through curtailing transfer spend. As for Everton, well I'm glad I'm not their accountant.
