It’s only going to get worse as players demand higher salaries and clubs demand upwards of £15 million for journeymen.
Also, the golden egg of TV and advertising money is dropping off, so the only way to generate more income is through ticket sales and merchandising. Putting up ticket prices disenfranchises fans. The proof is in the pudding when the most successful team in the league has to offer 2-for-1 tickets to maintain a full capacity crowd.
UEFA are acutely aware of this and have the Financial Fair Play Regulations ready to be applied. This is intended to restrict spending inline with a clubs earnings (70% of turnover to wages) and level the playing field for all. This hopefully will remove the Sugar Daddy Syndrome and deter clubs from the unsustainable spend, spend, spend scenario. Anyone breaking these limits is likely to be barred from European competition (Waiting to see the first challenge to this in the European courts over Restrictions of Trade).
This is where Arsenal find themselves at a crossroads.
The Arsenal model of, ‘spend what you earn’ and ‘make superstars, not buy them’ has worked, to a certain degree. Ok, we haven’t won a trophy in seven years, but we have kept pace with the Sugar Daddies and the debt ridden. We’ve maintained our league position and with a bit of luck will repeat that this season. We also have a self financed 60,000 seated stadium, while other clubs struggle to get new abodes off the ground and will struggle to finance any move in the future.
We have to make a choice.
Are we happy with consistency, keeping within the future guidelines and pushing for the odd title here and there. Building a young team, with potential, without breaking the bank, to deliver the goods in a few years, when the Sheikhs and the Russians have all got bored? Or, do we go for broke, join the over spenders, get at least short-term success, possibly fall foul of UEFA’s regulations, load the club with unsustainable debts and risk going the way of Rangers?
As a footnote, it has been revealed that Stan Kroenke would be willing to make between £50-100 million available for squad rebuilding.
This then gives Arsene Wenger a third choice, to keep with the ‘making not buying superstars’ policy whilst providing the ability to supplement it with some world class established players.
The choice is ours!!!
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Errors? Man U t/o higher than Arsenal. Regardless of revenues, this season Newcastle and Tottenham kicking well above their wage bills. Arsenal wage bill despite not being the highest in the league, the flip side of the low salary cap (not paying RVP enough) is that journeymen and dead wood are overpaid. Raising salary cap and paying stars can be done and is natural by being more ruthless about pruning the underachievers, just look at the number of players at Arsenal. A better salary and bonus structure which tied to output should be possible to implement. AW has always been frugal on transfer kitty but but judging from the wage bill, he is not kicking significantly above his weight and a great deal less than Tottenham and Newcastle this season.