How Many Club World Cup Has Manchester United Won Chelsea Top Premier League Wage Bill

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Chelsea Top Premier League Wage Bill

By all accounts, Chelsea Football Club now has the biggest wage bill in the English Premier League. The £172 million annual wage bill does not include new signings Fernando Torres, who has signed a £200,000-a-week deal and £25 million signing David Luiz, who joined the club this week.

Premier League wages have been extremely high in recent years and Chelsea’s wage bill is £40 million higher than nearest big-spending rivals Manchester City. A more important consideration is the percentage of a club’s turnover that is spent on player wages. Chelsea spend 82 per cent of their turnover on wages, while Manchester City spend 106 per cent, this is in stark contrast to other leading clubs such as Manchester United, who spend 46 per cent of their turnover on wages , while Arsenal spend 49 percent.

A number of famous players left Chelsea in the summer of 2010, with the departure of Michael Ballack, Juliano Belletti, Deco, Ricardo Carvalho and Joe Cole saving an annual £20m in wages and generating around £15m in transfer fees. Despite this saving, Chelsea have recently reported losses of £70.9m, which is £26.5m higher than the previous financial year, and the addition of Torres and Luiz will add significantly to their wage bill.

Under UEFA’s new Financial Fair Play rules, which come into force from the 2011-12 season, clubs must only spend on wages what they earn in ticket sales, marketing and other commercial income and other expenditure. For all intents and purposes the club’s books will have to balance, failure to do so could ultimately lead to expulsion from European competitions such as the Champions League.

A potential safety net exists within the rules, any players whose contracts were agreed before 1 June 2010 will be exempt, if these rules were applied to Chelsea for the last financial year they would have actually been shown to make a financial profit. The rules will not be tightened until 2016 when every player’s salary is taken into account, even then if a club is making a financial loss and they can prove that their finances are on the mend, they can get away with punishment by the governing body.

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