Forum | Percentage of income going on wages by dobjack2

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Percentage of income going on wages 08:17 - Jul 31 with 2606 views

The last figures I saw showed that 81% of our income goes on players wages and that this is the highest or if not one of the highest in the division. A risk.

Whether they "get us"or not we have been taken over by accountants. It appears to me they have decided to reduce our wages bill by selling or loaning squad players and as seems likely, although yet to be confirmed, selling some of our highest wage earners.

Replacements will not be on as much money. A saving of £10,000 a week wages equates to a saving of over £500,000 a year.

However for this policy to succeed we need to have top quality recruitment, an area where we have been sorely lacking for some time.

We appear to be well into phase 1 - releasing players but are not making headway on phase 2 - the recruitment of replacements on lower wages. This is high risk stuff as by shipping out players first, clubs we go to for replacements can ask for more money for their players as they know we will become increasingly desperate. Also players we don't want to leave may put their own plans into action to jump ship.

If this goes belly up, we will get relegated and the concern will be about how the majority shareholders recoup their outlay. I assume that this could involve such legal moves as a second fire sale, increased dividends etc. Which I assume a majority shareholder can do even if they don't control 75% of the voting rights. There may be other options open to them if they do control 75% of the voting rights.

Everyone is pretty quiet about behind the scenes stuff at the moment and I assume nothing much will be said before the window closes so as not to affect our transfer business.

Everything may all work out but we appear to be taking a major risk with our premiership place and subsequent playing strength to reduce the outlay on players wages.

Percentage of income going on wages on 08:38 - Jul 31 with 2563 views

dougie

There is no doubt that the squad is being trimmed. It was too big last year anyway. Trimming the squad will cut wage costs yes but also it gives the manager a more manageable squad and allows the under 23 players a chance.
This hasnt't been instigated by the yanks. It was happening well before they took over and perhaps the club after last year thought it the best way forward

Percentage of income going on wages on 08:50 - Jul 31 with 2533 views

phact0rri

I have to agree I don't think what is going on is happening by are brand new majority shareholders. I could be wrong and they could have been planning for a year or more trying to set the books and things. but I find this hard to believe. This sounds more like a club level thing, and if anything if it all goes pearshape, they can point the finger at the new shareholders.

Now granted if we do end up selling Ash/Ayew/siggy I think on the pitch we may have trouble specially with it coming so close to the beginning of the new season. And I hope these rumours are not true.

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Percentage of income going on wages on 09:08 - Jul 31 with 2498 views

Jango

With the extra to money and with some big earners gone already that percentage will have dropped significantly. We did have too big a squad last year for a team not in Europe. Trim the team right down and then we can afford to pay a bit more to the big players coming in. Doesn't happen overnight tho

Percentage of income going on wages on 09:21 - Jul 31 with 2446 views

dobjack2

Percentage of income going on wages on 08:38 - Jul 31 by dougie
There is no doubt that the squad is being trimmed. It was too big last year anyway. Trimming the squad will cut wage costs yes but also it gives the manager a more manageable squad and allows the under 23 players a chance. This hasnt't been instigated by the yanks. It was happening well before they took over and perhaps the club after last year thought it the best way forward

A fair comment as that % is not sustainable and action was going to be needed at some stage. It's just the tactics of having a major change of personnel before we get people in is fraught with danger. Especially during this window which has been affected by the euros.

If we were going to go down this route, a staged process over a couple of windows would have appeared less risky unless we have a set of transfers ready to go.

Percentage of income going on wages on 09:22 - Jul 31 with 2434 views

Treforys_Jack

Agree the squad was far too big. Take marvelous Marvin for example, I tend to like him when he plays, but he earns say 20k a week and appears roughly half a dozen times, does ok, then disappears without trace for a few mths.

Percentage of income going on wages on 09:26 - Jul 31 with 2417 views

Jango

Percentage of income going on wages on 09:22 - Jul 31 by Treforys_Jack
Agree the squad was far too big. Take marvelous Marvin for example, I tend to like him when he plays, but he earns say 20k a week and appears roughly half a dozen times, does ok, then disappears without trace for a few mths.

Exactly, get him off the wage bill freeing up more money in the accounts and if needed throw a youngster on

Percentage of income going on wages on 09:30 - Jul 31 with 2393 views

SwansNZ

Remind me who gave out all these big contracts.

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Percentage of income going on wages on 09:32 - Jul 31 with 2379 views

dobjack2

Percentage of income going on wages on 09:22 - Jul 31 by Treforys_Jack
Agree the squad was far too big. Take marvelous Marvin for example, I tend to like him when he plays, but he earns say 20k a week and appears roughly half a dozen times, does ok, then disappears without trace for a few mths.

I don't think too many fans have a problem with the squad being trimmed, however we don't have any strikers and face the distinct possibility of several of our highest earners going as well.

The acquisition of a 4th keeper against a background of squad trimming leads people to fear fab is on his way.

Replacing the higher earners, if they go, is the big risk especially as our search for a striker(s) doesn't appear to be going too well.

Percentage of income going on wages on 09:38 - Jul 31 with 2349 views

Treforys_Jack

Percentage of income going on wages on 09:32 - Jul 31 by dobjack2

Agreed.

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